The large Wall Street bank, JPMorgan, is making notable moves to integrate cryptocurrency into traditional financial services. According to information from #Bloomberg , JPMorgan plans to allow its wealthy clients to use shares of cryptocurrency ETFs, such as BlackRock's iShares Bitcoin Trust (IBIT), as collateral for loans. This is an important step, showing a shift in the bank's view towards digital assets.
In addition to accepting #ETFbitcoin as collateral, JPMorgan will also begin to consider crypto assets when assessing the net worth and liquidity of clients. This means that crypto assets will be viewed similarly to real estate or other assets when the bank evaluates a client's ability to repay a loan. A representative from JPMorgan has confirmed this information to #Decrypt .
Although JPMorgan CEO Jamie Dimon has been a skeptic of Bitcoin, the bank has gradually changed its stance. Recently, JPMorgan has allowed clients to trade Bitcoin and Ethereum. This indicates a clear shift from a conservative attitude to embracing and integrating digital assets into core financial services.
JPMorgan is not the only major financial institution making this move. Many other traditional financial corporations, such as Fidelity and Standard Chartered, have also launched digital asset trading services for both institutional and individual clients this year. The approval of Bitcoin and Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) last year has opened the door for investors to access digital assets through traditional securities trading channels.
These ETFs, managed by major names like BlackRock, Fidelity, and Grayscale, have achieved tremendous success. In particular, Bitcoin ETF products have had the most successful launch in the history of ETFs, with BlackRock's iShares Bitcoin Trust (IBIT) leading the way, currently managing over $70 billion in assets. JPMorgan's latest move continues to affirm the trend of extensive integration of cryptocurrency into the global financial system.
Investing in cryptocurrency carries high risks due to significant price volatility.