In a major move that integrates web3 with traditional finance, J.P. Morgan Chase will allow its institutional clients to use their crypto holdings as collateral for loans.
Global financial service provider J.P. Morgan Chase will allow its institutional clients to use their crypto holdings as collateral when obtaining loans. As such, clients holding BTC-USD and ETH-USD pairs will be able to collateralize these crypto assets to borrow loans by the end of the year.
A third-party custodian will be responsible for securing the pledged of the new service that will be available globally. J.P. Morgan has been actively integrating the traditional market with cryptocurrencies, indirectly. On a previous occasion, the financial service provider accepted ETFs linked to cryptocurrencies. However, with this new program, J.P. Morgan’s clients will be able to directly collateralize cryptocurrencies.
However, what’s more interesting is the change in J.P. Morgan’s CEO’s view about crypto. From once calling it a money laundering tool, “worse than tulip bulbs,” to shifting his stance to a more receptive “defend your right to buy bitcoin” stance, the CEO Jamie Dimon’s change of view is quite surprising.
Another public figure whose perception of crypto changed drastically is U.S. President Donald Trump. Trump once called crypto a threat to the dollar; however, after becoming the president early this year, he has taken a pro-crypto stance, and was able to pass regulations and laws like the GENIUS Act, which regulates stablecoin.
