JPMorgan Exploring Loans Backed by Bitcoin, Ethereum: FT
JPMorgan Chase is considering offering loans secured by clients' cryptocurrency holdings, including Bitcoin and Ethereum, potentially starting next year. This marks a significant policy shift for the bank, whose CEO Jamie Dimon previously criticized Bitcoin as a "fraud." The move could influence other Wall Street firms, creating new credit markets and legitimizing crypto as collateral for traditional loans. JPMorgan cannot hold crypto on its balance sheet due to Basel III regulations, which impose high capital requirements for crypto exposure. However, Dimon's earlier skepticism may have cost the bank clients interested in digital assets. The bank has begun accepting crypto ETF shares as loan collateral and is expanding its stablecoin development. Recent regulatory changes may encourage banks to engage more with digital assets. Other banks, including Morgan Stanley and Citigroup, are also exploring crypto trading and stablecoin initiatives.
