JPMorgan Chase plans to accept Bitcoin and Ethereum as collateral for loans by year-end, Bloomberg reported.The program will reportedly rely on a third-party custodian for token security.The move highlights the bank’s growing acceptance of digital assets on Wall Street.
JPMorgan Chase (JPM), one of the largest banks in the U.S., is reportedly planning to let clients use Bitcoin (BTC) and Ethereum (ETH) as collateral for loans by the end of the year.
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The bank already allows crypto-linked exchange-traded funds (ETFs) to be pledged as collateral. The expansion to direct cryptocurrency holdings marks another step in integrating digital assets into traditional finance. According to a Bloomberg report, the bank’s upcoming program will rely on a third-party custodian to secure the tokens put up as collateral.
JPM’s stock edged 0.14% higher in pre-market trade, with retail sentiment on Stocktwits trending in ‘neutral’ territory over the past day. Meanwhile, Bitcoin’s price rose 1.6% in the last 24 hours to cross $111,000 amid a recovering cryptocurrency market. Retail sentiment around Bitcoin remained in ‘bearish’ territory as chatter dipped to ‘normal’ from ‘high’ levels. Ethereum’s price rose 2% to trade just under $4,000. Retail sentiment around the leading altcoin also trended in the ‘bearish’ zone.
Jamie Dimon’s Evolving Stance On Crypto
The move showcases a gradual shift at JPMorgan, whose CEO Jamie Dimon once said he would fire any trader at his bank if they got caught trading Bitcoin for being “stupid” and that BTC was “fraud”. Just a year ago, at Davos, he called Bitcoin a “pet rock” and said “it does nothing.”
While Dimon has remained skeptical of the sector, his tone has softened. “I don’t think we should smoke, but I defend your right to smoke,” he said at JPMorgan’s investor conference in May, as per Koyfin. “I defend your right to buy Bitcoin, go at it.”
The bank is now treating crypto more like conventional assets such as stocks, bonds, or gold in its lending operations – a move that aligns with the Trump administration taking a more crypto-friendly stance on the market.
Read also: BTC Price Climbs As Investors Await CPI, Trade Talks Between Trump And Xi
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