JPMorgan to Launch Cryptocurrency ETF-Backed Loan Service

JH Kim

Summary

JPMorgan announced plans to provide a loan service backed by cryptocurrency ETFs as collateral.
It was reported that initially BlackRock's spot Bitcoin ETF (IBIT) will be used as collateral, with plans to expand to other spot ETFs.
JPMorgan stated that it is preparing a plan to include virtual assets in asset evaluation criteria for high net worth individuals.

According to Bloomberg News on the 4th (local time), the largest investment bank in the United States, JPMorgan, is reportedly planning to provide a loan service to customers using cryptocurrency (crypto asset) exchange-traded funds (ETFs) as collateral.

Initially, JPMorgan will utilize BlackRock's spot Bitcoin (BTC) ETF, IBIT, as collateral, and later plans to expand to other spot ETFs.

JPMorgan is also reportedly preparing a plan to include customers' virtual asset holdings in asset evaluation criteria for high net worth individuals. As a result, loan limits may vary depending on the assessed value of assets.

However, JPMorgan did not respond to Bloomberg's request for comment.

Jamie Dimon, CEO of JPMorgan, has maintained a negative stance on cryptocurrencies; however, on the 20th of last month, he announced that customers would be allowed to buy Bitcoin.

Meanwhile, JPMorgan is also reportedly in discussions with other global major banks for the joint development of a stablecoin.