JPMorgan to let institutional clients pledge BTC and ETH as loan collateral by year-end: Bloomberg
JPMorgan plans to allow institutional clients globally to use Bitcoin and Ether as loan collateral by year-end.Summary
JPMorgan Chase is set to enable its institutional clients worldwide to pledge their holdings of Bitcoin (BTC) and Ether (ETH) as collateral for loans before the end of the year. This new program will utilize a third-party custodian to secure the pledged digital assets. This move follows JPMorgan's earlier step of accepting crypto-linked ETFs as collateral, but now allows clients to use the underlying cryptocurrencies themselves, potentially easing liquidity access for institutions without forcing them to sell long-held crypto positions. This development signifies a major pivot for the bank, whose CEO, Jamie Dimon, was previously critical of Bitcoin, reflecting increased client demand and evolving regulatory clarity in the financial sector. Other major firms like Morgan Stanley, BNY Mellon, and Fidelity are also expanding their crypto services.
(Source：The Block)