How JPMorgan’s Bitcoin collateral plan could unlock $20 billion in liquidity

JPMorgan Chase is preparing to allow institutional clients to pledge Bitcoin and Ethereum as collateral for cash loans, with the assets held by approved third-party custodians like Coinbase, expected to roll out by the end of 2025. This move, despite CEO Jamie Dimon's past criticism of Bitcoin, is driven by the increasing demand in the digital asset industry. Crypto researcher Shanaka Anslem Perera estimates this model could immediately unlock $10 billion to $20 billion in lending capacity for entities seeking dollar liquidity without selling their tokens. JPMorgan's entry institutionalizes crypto-collateralized lending, signaling that digital assets meet global finance's standards for compliance and risk management. Experts suggest this will trigger a "competitive cascade" among large banks, as rivals like Citi and Goldman Sachs are already expanding digital-asset initiatives, although challenges like volatility and uncertain regulatory capital treatment remain.

(Source：CryptoSlate)