What happened?
JPMorgan announced the opening of spot Bitcoin ETFs as collateral for loans, starting from BlackRock's iShares Bitcoin Trust, symbolizing the gradual openness of traditional financial institutions towards cryptocurrency assets.
In addition, JPMorgan will also include Bitcoin ETFs alongside stocks and real estate in the calculation of customer net worth and liquidity, integrating cryptocurrency assets into the mainstream financial system and strengthening their role in financial management and application.
Under the loosened cryptocurrency regulatory policies of the Trump administration, US banks are gradually embracing cryptocurrency assets. JPMorgan's change in attitude also echoes the overall shift in the financial environment, moving cryptocurrency assets from speculative targets to institutionalized assets.
JPMorgan allows the use of 'spot Bitcoin ETFs' as collateral for loans
Financial giant JPMorgan recently announced that it will allow its clients to use 'spot Bitcoin ETFs' as collateral for loans. This decision not only represents a more open attitude of the traditional financial system towards cryptocurrency assets but also highlights that under the Trump administration's regulations, US financial institutions have entered a 'crypto-friendly' new stage.
According to a report from Bloomberg, JPMorgan allows retail and institutional clients to use specific cryptocurrency-linked products (like spot Bitcoin ETFs) as collateral for borrowing. The first wave will start with BlackRock's iShares Bitcoin Trust (IBIT), which is currently the largest spot Bitcoin ETF by market capitalization in the US. According to Sosovalue.com, its total managed assets reach as high as $70.1 billion.
This decision applies to global clients, and in the future, JPMorgan will also evaluate whether other products similar to Bitcoin ETFs also qualify for collateral.
In addition to being used as collateral, JPMorgan also announced that the holdings of cryptocurrency ETFs will be included in the net asset value and liquidity assessment of customer assets. This means that in financial services, Bitcoin ETFs will enjoy similar treatment to traditional assets such as stocks, bonds, and real estate.
In the past, banks often excluded cryptocurrency assets when assessing customer credit, only considering them in specific situations or cases. Now, with JPMorgan's policy change, it is clear that mainstream financial institutions' attitudes towards the cryptocurrency market are softening.
US cryptocurrency regulatory policy is gradually easing
In recent years, JPMorgan has gradually laid out its position in the cryptocurrency market, including the launch of the dollar-pegged stablecoin JPM Coin and the purchase of Bitcoin ETF shares. However, the company's CEO Jamie Dimon often criticizes Bitcoin, even stating that the US should purchase military supplies such as guns, ammunition, and drones instead of Bitcoin.
However, Dimon recently stated at an investor day that although he personally does not recognize the value of Bitcoin, he defends people's right to buy Bitcoin. He used cigarettes as a metaphor: 'I don't think you should smoke, but I defend your freedom to smoke. I defend your right to buy Bitcoin, go ahead.'
Of course, JPMorgan's new move is by no means an isolated case. Since Trump returned to the White House, federal-level cryptocurrency regulatory policies have clearly loosened. For example, the Federal Reserve recently withdrew its previous guidelines, no longer restricting banks from engaging in cryptocurrency and stablecoin businesses; the Office of the Comptroller of the Currency (OCC) stated that banks can custody users' cryptocurrency assets.
In addition, the Senate is pushing for legislation related to stablecoins to establish a clear compliance framework; the Trump administration's announcement of establishing a reserve system for Bitcoin and other digital assets can be seen as proof of the country's 'recognition' of cryptocurrency assets.
From being a marginalized asset in the past to now being included in asset allocation and loan assessments, this also represents that, whether for individual investors or institutional clients, cryptocurrency products will no longer just be 'speculative targets' in asset planning.
Data sources: CoinTelegraph, PYMNTS
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