JPMorgan, the largest bank in the U.S. by assets, is set to permit its trading and wealth-management clients to use cryptocurrency-linked assets as collateral for loans. This comes from a report by Bloomberg, which states the bank plans to accept financing against crypto exchange-traded funds (ETFs) within weeks. Initially, JPMorgan will focus on BlackRock’s iShares Bitcoin Trust, identified as the largest spot Bitcoin ETF in the U.S. with approximately $70.1 billion in net assets.
In evaluating clients’ borrowing capacities, JPMorgan will now incorporate the clients’ crypto holdings alongside traditional assets, signaling a more inclusive approach to valuation. The move is part of a broader trend among U.S. banks exploring opportunities in the cryptocurrency space. Notably, in 2020, JPMorgan launched JPM Coin, a dollar-pegged stablecoin, and more recently, it has added shares of several spot Bitcoin ETFs to its portfolio.
Despite these advancements, JPMorgan CEO Jamie Dimon has shared mixed feelings about cryptocurrencies. He likens investing in Bitcoin to smoking, saying, 'I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin.'
Recent developments have also seen the U.S. regulatory environment shifting favorably for banks involved in crypto operations. In comparison, the Trump administration has eased restrictions, allowing banks to handle customer crypto assets and encouraging future stablecoin legislation.
In evaluating clients’ borrowing capacities, JPMorgan will now incorporate the clients’ crypto holdings alongside traditional assets, signaling a more inclusive approach to valuation. The move is part of a broader trend among U.S. banks exploring opportunities in the cryptocurrency space. Notably, in 2020, JPMorgan launched JPM Coin, a dollar-pegged stablecoin, and more recently, it has added shares of several spot Bitcoin ETFs to its portfolio.
Despite these advancements, JPMorgan CEO Jamie Dimon has shared mixed feelings about cryptocurrencies. He likens investing in Bitcoin to smoking, saying, 'I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin.'
Recent developments have also seen the U.S. regulatory environment shifting favorably for banks involved in crypto operations. In comparison, the Trump administration has eased restrictions, allowing banks to handle customer crypto assets and encouraging future stablecoin legislation.
