JPMorgan Embraces Crypto: Allows BlackRock Bitcoin ETF Shares as Loan Collateral
David ClarkeSources told Bloomberg the bank will also begin taking crypto holdings into account when assessing a client's net worth and liquid assets.[...]
JPMorgan to Allow Crypto Holdings as Loan Collateral for Wealthy Clients
In a major step toward embracing the cryptocurrency market, Wall Street giant JPMorgan will now permit its high-net-worth clients to use shares in crypto exchange-traded funds (ETFs), including BlackRock's iShares Bitcoin Trust, as collateral for loans.
According to sources familiar with the matter, the bank will also begin considering clients' cryptocurrency holdings when evaluating their net worth and liquid assets. This means crypto investments will receive the same treatment as traditional assets like real estate and vehicles in loan assessments.
The decision signals a notable shift for JPMorgan, which has historically taken a cautious stance toward digital currencies. While CEO Jamie Dimon has been a vocal Bitcoin critic, the bank recently began allowing customers to trade Bitcoin and Ethereum.
This development represents a significant milestone in cryptocurrency adoption, demonstrating growing acceptance of digital assets within traditional finance. As the crypto market matures, other major financial institutions may follow suit in recognizing these emerging asset classes.
