The largest bank in the United States, JPMorgan Chase, intends to let customers use cryptocurrency-related assets as loan collateral, beginning with BlackRock’s iShares Bitcoin Trust ETF. Given that President Donald Trump’s administration has been actively assisting the sector, this is a significant step.
As per the Bloomberg report, JPMorgan will soon start offering loans backed by crypto exchange-traded funds (ETFs), starting with the BlackRock Bitcoin ETF taking the lead. This is the latest step by a major U.S. bank to get more involved in crypto.
Additionally, JPMorgan will also start including clients’ crypto holdings when checking their total wealth and available assets in some cases. This means cryptocurrencies will be treated like stocks, cars, or art when deciding how much money a client can borrow.
JPmorgan has been using blockchain technology for years, mainly for things like payments. It also works with major companies like Coinbase. However, its CEO, Jamie Dimon, often criticized crypto. At an investor event in May, he said he is “not a fan” of Bitcoin, but still allows the bank to offer it to clients.
Also Read: JPMorgan CEO Jamie Dimon Sounds Alarm Over US Bitcoin Reserve
