JPMorgan seeks to recognize Bitcoin and cryptocurrency exchange-traded funds (ETFs) as acceptable forms of credit collateral
In a significant development for the crypto industry, JPMorgan is reportedly planning to accept Bitcoin and crypto Exchange-Traded Funds (ETFs) as collateral for loans. This move, if confirmed, aims to make Bitcoin a more attractive investment class for a wide range of customers.
The news, first reported by Bloomberg, suggests that JPMorgan's next step could involve the acceptance of digital assets as collateral. However, the bank has not officially announced a specific date for this change.
Tristan, the editor-in-chief at Blocktrainer.de and a graduate economist with journalistic experience outside the Bitcoin space, broke the story. Tristan has been actively involved with Bitcoin since 2020 and was previously interested in libertarian economic theory.
If the plans materialise, JPMorgan will consider crypto holdings when evaluating the net worth and liquid assets of some clients in wealth management. This could potentially mean that a customer's Bitcoin portfolio could positively impact their creditworthiness, similar to real estate or stocks.
The iShares Bitcoin Trust (IBIT) is expected to be the first Bitcoin spot-ETF used for this purpose. This move comes after the Federal Reserve has withdrawn anti-crypto guidelines for banks, and the FDIC has eased crypto services for banks in the United States.
JPMorgan's move towards accepting Bitcoin and crypto ETFs is a significant shift from the past. In 2017, JPMorgan's CEO Jamie Dimon expressed strong criticism towards Bitcoin, stating that he would fire any employee trading Bitcoin for being 'stupid'. However, in recent times, the bank has been increasingly pushing into the Bitcoin and crypto market. Just a few weeks ago, Dimon emphasised that his bank allows customers to buy Bitcoin.
Despite the bank's recent moves, it's important to note that JPMorgan's plans to accept Bitcoin and crypto ETFs as collateral for loans have not been officially confirmed. Bloomberg did not receive a response to their inquiry regarding JPMorgan's plans. Some customers have already pledged their crypto ETFs as collateral for loans at JPMorgan, indicating a possible shift in the bank's stance towards digital assets.
This article is written by Tristan, who has been actively involved with Bitcoin since 2020 and is the editor-in-chief at Blocktrainer.de.
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