JPMorgan will let clients use Bitcoin ETFs to secure loans starting with BlackRock’s iShares Bitcoin Trust.
The bank will include crypto assets when calculating client net worth for better loan limit assessments.
JPMorgan plans to expand the service to support more Bitcoin ETFs in the coming weeks.
JPMorgan Chase is preparing to let wealth clients use crypto ETFs as collateral for loans. The plan marks a strategic move to blend traditional finance with crypto-backed products. According to insiders, the offering will begin within weeks.
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The bank will initially accept shares of BlackRock’s iShares Bitcoin Trust (IBIT). IBIT currently stands as the largest Bitcoin ETF globally. It holds around $70 billion in net assets as of June 4. This figure more than doubles the assets held by Fidelity’s FBTC, which ranks second.
Expansion Beyond IBIT Expected
After launching with IBIT, JPMorgan plans to support other spot Bitcoin ETFs. This change follows earlier practices where only select clients could use crypto ETFs as loan collateral. Those instances were limited and handled individually.
Now, the bank is broadening access, starting with clients under its wealth-management division. The change will apply to both trading and wealth clients. The move positions JPMorgan among top financial institutions advancing digital asset integration.
Crypto to Be Counted in Net Worth Calculations
In a related shift, JPMorgan will now consider clients’ crypto holdings in total net worth evaluations. The bank will include these assets while determining how much credit a client can access. Larger crypto holdings may result in higher loan limits.
This policy could benefit clients with substantial Bitcoin ETF investments. By treating crypto assets like traditional investments, the bank enhances its lending flexibility.
No Public Statement Yet From JPMorgan
JPMorgan has not released an official announcement confirming the initiative. However, the reported timeline indicates internal preparations are underway. The bank continues to assess and refine the offering before full rollout.
This move signals a deeper shift in how major banks view digital assets. While some executives have criticized crypto, institutions are finding ways to incorporate it for client benefit.
Broader Industry Trend Emerges
JPMorgan’s decision mirrors industry trends as rivals explore crypto-linked services. Morgan Stanley is preparing to offer crypto trading through its E*Trade platform. That platform will let clients buy selected cryptos, including Bitcoin, using existing brokerage accounts.
Standard Chartered has also entered the market through partnerships to offer digital asset services. These developments reflect growing interest in crypto among high-net-worth clients. JPMorgan's new strategy could redefine how crypto fits into private banking and lending services.
