JPMorgan plans to let trading and wealth-management clients use certain crypto-linked assets, including Bitcoin spot ETFs, as loan collateral in the coming weeks.
Initially, the bank will allow financing backed by shares of BlackRock’s iShares Bitcoin Trust, treating crypto holdings like real estate and vehicles in loan assessments.
Despite CEO Dimon being a Bitcoin skeptic, JPMorgan is expanding its crypto offerings amid increasing institutional pressure to accommodate digital assets.
The bank's pivot towards crypto comes as regulatory environment warms up, with recent easing of restrictions on banks and crypto-centric businesses in the US.