Bitcoin Magazine
JPMorgan to Accept Bitcoin as Loan Collateral by Year-End
JPMorgan Chase intends to allow institutional clients to use Bitcoin (BTC), and Ethereum (ETH), as collateral by the year 2025. Bloomberg report.
This new program will most likely be implemented globally and will use a third-party to manage pledged assets. The bank already allows crypto-linked ETFs are exchange-traded funds. collateralThis expansion will allow clients to lend against direct crypto assets.
The shift could make it easier for institutions to access liquidity without selling long-term digital asset positions — a use case that has gained traction among hedge funds and family offices.
This development is a sign of a wider acceptance for digital assets in the financial industry. The other major banks include Morgan StanleyBNY Mellon State Street Fidelity are expanding their Crypto custody and Trading Services amid increased regulatory clarity both in the U.S.
JPMorgan initially began exploring the lending of Bitcoins to JPMorgan in 2022. However, this project has been delayed. Bloomberg.
Jamie Dimon’s shifting tone on cryptocurrency
JPMorgan CEO Jamie Dimon is one of the most vocal crypto skeptics. He has previously called Bitcoin an a “fraud” A “pet rock.” He said that he would be in 2023 “deeply opposed” Bitcoin, claiming that it is primarily used for illegal activity.
Recently, however, his tone softened. “I don’t think we should smoke, but I defend your right to smoke,” Dimon stated earlier in the year. “I defend your right to buy Bitcoin, go at it.”
JPMorgan’s crypto exposure has increased despite Dimon’s reservations. The bank launched its J.P. Morgan Deposit Token (JPMD) — a blockchain-based alternative to stablecoins — and expanded its Kinexys blockchain network, which now processes more than $2 billion in daily transactions across carbon markets, supply chain finance, and cross-border payments.
Bitcoin and Ethereum Prices Rise
Bitcoin rose by 3% in the 24 hour period to above $111,000 and Ethereum gained 2.5% to just hover below $4,000 according to Bitcoin Magazine Pro’s data.
JPMorganChase, Coinbase and JPMorganChase were back in July. announced A strategic partnership is being formed to help their customers access Bitcoins and other crypto currencies.
Deal included direct banking to wallet, ability for Chase Ultimate Rewards members to convert points into crypto and funding Coinbase accounts with credit cards. The bank-to wallet and reward features would launch by 2026.
Postings on this page JPMorgan to Accept Bitcoin as Loan Collateral by Year-End The first appearance of the phrase “first appeared” was on Bitcoin Magazine It is written by Micah Zimmerman.
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Source: bitcoinmagazine.com
