JPMorgan Chase & Co. plans to allow its trading and wealth-management clients to use cryptocurrency-linked assets, including spot Bitcoin exchange-traded funds (ETFs), as collateral for loans.
The bank will start with BlackRock’s iShares Bitcoin Trust (IBIT) and plans to extend to additional ETFs gradually for clients globally.
JPMorgan will now factor in crypto holdings into net worth and liquid asset evaluations, aligning them with traditional assets like stocks and vehicles for loan eligibility.
This decision signifies a formal expansion of crypto integration, following a more positive regulatory environment in the U.S., with President Donald Trump's administration showing favor towards digital assets.