Key Takeaways
- JPMorgan will begin accepting Bitcoin and crypto ETFs as collateral for loans globally.
- The bank will treat digital assets like other traditional assets in wealth management evaluations.
JPMorgan Chase & Co., the largest US bank by assets, is set to let its trading and wealth-management clients use crypto ETFs as loan collateral, Bloomberg reported Wednesday, citing sources with knowledge of the plan.
The decision is part of a bigger plan to allow certain clients to borrow money using crypto-related assets. The bank is said to have started with crypto ETFs, particularly BlackRock’s iShares Bitcoin Trust (IBIT).
The bank is also gearing up to incorporate crypto holdings when evaluating wealth-management clients’ net worth.
The largest US bank will begin offering financing against crypto ETFs in the coming weeks, starting with BlackRock Inc.’s iShares Bitcoin Trust. The bank will treat digital assets similarly to stocks, cars, or art when calculating clients’ borrowing capacity against their assets.
The changes will apply to all of the bank’s wealth management clients globally, spanning from retail customers to high-net-worth individuals, sources said.
This is a developing story.
Source: https://cryptobriefing.com/jpmorgan-crypto-loan-collateral/