Summary
- JPMorgan Chase said it plans to introduce a measure to recognize Bitcoin and Ethereum as loan collateral by the end of this year.
- The decision is regarded as one of the most proactive crypto asset integration moves among major Wall Street banks.
- JPMorgan's move signals that traditional financial institutions are leading the integration of crypto assets, heralding a symbolic change in the market.
JPMorgan Chase (JPMorgan Chase & Co.) will introduce a measure this year to recognize Bitcoin (BTC) and Ethereum (ETH) held by institutional clients as collateral for loans. This is seen as one of the most proactive crypto asset integration moves among major Wall Street banks.
On the 24th (local time), Bloomberg reported that JPMorgan plans to implement a global program within the year allowing institutional clients to use their Bitcoin and Ethereum as loan collateral. The collateral assets will be held securely through third-party custodians, expanding a policy that previously recognized crypto asset exchange-traded funds (ETFs) as collateral.
A JPMorgan spokesperson said, "It is difficult to comment specifically."
This move shows the trend of major banks, including JPMorgan, incorporating cryptocurrencies into the financial system. Morgan Stanley, State Street, and Fidelity are also pursuing similar services recently.
JPMorgan's decision can be interpreted as a symbolic change. Jamie Dimon, CEO, previously criticized Bitcoin as a "hyped-up fraud" or a "pet rock," but it will now be treated as collateral like traditional assets.
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
