🕑JP Morgan prepares to use digital currency assets as collateral for loans,🕑
JP Morgan (NYSE:JPM) Chase & Co., the largest bank in the United States, is preparing to allow its clients in trading and wealth management to use certain assets linked to cryptocurrencies as collateral for loans, according to a report by Bloomberg News on Wednesday. This significant step aligns with the bank's efforts to expand into an industry that has received support from President Donald Trump.
In the coming weeks, the bank will begin offering financing against cryptocurrency exchange-traded funds (ETFs), starting with the iShares Bitcoin Trust managed by BlackRock Inc., according to sources familiar with the matter. This move indicates the continued push by major U.S. banks towards the cryptocurrency sector, following the Trump administration's efforts to reduce regulatory constraints.
The bank will also begin to consider cryptocurrency holdings of wealth management clients when determining their net worth and overall liquidity. This approach suggests that cryptocurrencies will receive similar treatment to other assets like stocks, cars, or art when calculating a client's borrowing capacity against their assets.
When asked for comment, a representative from JP Morgan chose not to respond.$BNB $BTC $SOL
