A Milestone Breakthrough in the Crypto World
This morning, the crypto world was blown away by JPMorgan's announcement — this top global investment bank actually stated that Bitcoin and Ethereum can be directly used as collateral for loans! This is no ordinary move; calling it a milestone breakthrough in the crypto world is no exaggeration.
In the past, if you wanted to convert your holdings, you either had to reluctantly sell your coins or seek out high-risk lending platforms; traditional loans only recognized real estate and stocks, leaving crypto assets out of the equation. Now, with JPMorgan accepting BTC and ETH as collateral, it’s akin to established banks starting to recognize jade, marking traditional finance’s public acknowledgment of the value of crypto assets, far outweighing the small moves of other institutions.
More importantly, JPMorgan has strict risk controls, and passing their review is equivalent to stamping BTC and ETH with a "compliance value seal," proving that they are not merely speculative fringe products.
For ordinary players, the three most tangible impacts are: first, you don’t have to sell your coins to borrow money, maximizing asset flexibility; second, the returns on holding coins are not limited to price fluctuations, as there are additional financing channels; third, after JPMorgan takes the lead, more financial institutions may follow suit, leading to a more mature industry.
However, the thresholds and risks must be clearly understood: cryptocurrencies are highly volatile, and the loan amounts are likely to be lower than those for stock collateral (for example, stock loans might allow 70%, while BTC and ETH may only offer 50% or less); initially, the business is likely to prioritize institutional clients, with strict review processes for individual applications.
This move has long been in the making, as regulations have clarified and custody standards have been established, the conditions for traditional finance to enter have matured. No matter how positive the news, it must be approached cautiously; one must first understand the rules before taking action.
In fact, many people face difficulties in the crypto space, not because they lack diligence, but simply because they occasionally lack clear directional guidance. The market conditions are always present, and good opportunities won’t wait indefinitely for us. If we can find a reliable direction and keep up with the right pace, perhaps we can navigate the ups and downs of the market more calmly and take fewer detours.
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