What You Need to Know
- JPMorgan is set to start accepting shares of BlackRock’s iShares Bitcoin Trust (IBIT) as collateral for loans.
- The bank will begin including some clients’ crypto assets when calculating their net worth and liquid assets.
- Amid rising political and investor pressure, JPMorgan and other banks are making moves to support cryptocurrency assets.
JPMorgan Chase has declared plans to enable trading and wealth-management clients to use certain cryptocurrency-related assets, such as spot Bitcoin exchange-traded funds (ETFs), as collateral for loans. Starting soon, clients will find that shares of BlackRock’s iShares Bitcoin Trust (IBIT) can back their financing options, as reported by Bloomberg from sources familiar with the situation. This major shift follows CEO Jamie Dimon’s recent comments regarding letting clients purchase Bitcoin, marking a significant alteration to the bank’s stance on digital currencies, given Dimon’s previous critical views on cryptocurrencies for their links to illegal activities.
JPMorgan’s turnaround reflects an increasing pressure from institutional demands for greater cryptocurrency accessibility as the financial landscape evolves to include digital asset options. Furthermore, with changing political climates, banks that have traditionally approached cryptocurrency with caution find themselves in a complex position regarding access.
