JPMorgan Chase & Co. (NYSE:JPM) recently noted that it will be allowing institutional customers to use their Bitcoin (BTC) and Ethereum (ETH) as a form of collateral for loans, marking a significant shift in how Wall Street’s largest banking institutions leverages digital assets as part of its core lending strategy. This, according to a report from Bloomberg.
The recently announced initiative, expected to be rolled out by the end of 2025, will allow customers pledge Bitcoin and Ethereum for obtaining secured loans. A third-party custodian is to be responsible for safeguarding the pledged crypto tokens in order to ensure adequate risk compliance.
The latest update from JPMorgan now expands its previous initiative that accepted cryptocurrency-linked ETFs as type of loan collateral. This move underscores how traditional banking institutions are gradually increasing their exposure to crypto-assets amid more progressive…
