JPMorgan Plans to Offer Financing Services for Crypto ETFs, Considering Accepting Crypto Assets as Loan Collateral

According to Bloomberg citing informed sources, JPMorgan is planning to expand its crypto-related services, allowing clients to use crypto assets as loan collateral, applicable to certain spot Bitcoin ETFs, including BlackRock's iShares Bitcoin Trust (IBIT).

According to the report, JPMorgan will also include the crypto assets held by wealth management clients in its total net worth and liquid asset calculations for assessing borrowing limits. Previously, such financing arrangements were only available in select cases.

This marks a significant step as JPMorgan accelerates the rollout of crypto products to trading and wealth management clients, coinciding with a gradual warming of the regulatory environment in the U.S. Notably, the bank's CEO Jamie Dimon, while still cautious about crypto assets last month, has made it clear that clients will be allowed to purchase Bitcoin, although the bank will not custody these assets.

Additionally, JPMorgan is also assisting other crypto companies in expanding their businesses. In May of this year, stablecoin issuer Circle hired JPMorgan to help advance its initial public offering (IPO).

BlackRock's IBIT is currently the world's largest spot Bitcoin ETF, managing assets totaling $69 billion, capturing about 78% of the spot Bitcoin ETF market share.$BNB