JPMorgan to Allow Crypto Assets as Collateral for Loans

JPMorgan Chase & Co., the largest U.S. bank, is poised to enable its trading and wealth-management clients to use certain crypto-related assets as collateral for loans, according to a recent report. This move aligns with the bank's broader strategy to expand into the cryptocurrency industry, which has gained momentum following supportive gestures from the Trump administration.

The initiative will begin with allowing clients to use assets tied to crypto exchange-traded funds (ETFs), starting with BlackRock's iShares Bitcoin Trust. This development underscores a growing trend among major U.S. banks to embrace cryptocurrencies, driven in part by regulatory easing efforts under the Trump administration.

Additionally, JPMorgan will consider crypto holdings when assessing the net worth and liquidity of its wealth-management clients. This approach treats cryptocurrencies similarly to traditional assets like stocks, vehicles, or art when determining borrowing capacity.

A JPMorgan representative declined to comment on the matter. This strategic shift highlights the increasing integration of cryptocurrencies into mainstream financial services, signaling a potential turning point for crypto adoption in traditional banking.