JPMorgan to Accept Bitcoin and Ethereum as Loan Collateral
- JPMorgan Chase & Co. plans to allow institutional clients to use Bitcoin and Ethereum as collateral for cash loans by the end of 2025.
- The bank’s borrowers can pledge these cryptocurrencies, which will be held by approved custodians like Coinbase.
- Open centralized-finance (CeFi) borrows reached $17.78 billion as of June, a rise of 15% quarter-over-quarter and up by 147% year-over-year.
- Total outstanding collateralized crypto credit, including decentralized loans, hit $53.09 billion in Q2.
- Analysts estimate this model could unlock between $10 billion and $20 billion in lending capacity for large asset managers and hedge funds.
This shift indicates that digital assets are becoming integrated into traditional finance, meeting compliance and risk-management standards required by global finance.
JPMorgan’s initiative could reshape credit markets, allowing firms to raise capital against digital assets similarly to US Treasuries or blue-chip equities.(Source)
