Banking giant JPMorgan plans to officially accept Bitcoin and other cryptocurrenciesETF as collateral for loans. The $3,6 trillion asset manager will begin providing financing for products such as iShares Bitcoin Trust (IBIT) by BlackRock.
The move coincides with a shift in sentiment toward the crypto sector in traditional finance. JPMorgan CEO Jamie Dimon has long been skeptical of Bitcoin and other cryptocurrencies, but the firm has continued to engage with the asset class and integrate it into its offerings over the past year.
US President Donald Trump’s policies have forced traditional banks to rethink their position in the new industry. As a result, there has been a shift towards integration and acceptance. Interestingly, JPMorgan has become a key player in this movement by deciding to accept Bitcoin and cryptocurrencies ETF as collateral for loans.
In addition, JPMorgan will begin to include its wealth management clients’ crypto assets in “assessments of their total net worth and liquid assets,” another major development. In other words, the bank will begin treating cryptocurrencies the same way it treats stocks or other similar assets.
