According to insiders who spoke to Bloomberg, in the coming weeks, JPMorgan Chase will begin offering financing with cryptocurrency funds as collateral starting with iShares Bitcoin Trust from BlackRock Inc. The move marks further acceptance of digital assets by US banks after the Trump administration began loosening regulatory hurdles.
As reported by the agency, in some cases, JPMorgan will also begin taking into account cryptocurrency assets of wealth management clients when assessing their total net worth and liquid assets. This means that cryptocurrencies will be considered on par with stocks, automobiles, or artwork when calculating the potential amount of money a client can borrow.
JPMorgan was one of the first major banks to start using blockchain technology for payments. Its clients also include cryptocurrency exchanges such as Coinbase Global Inc. However, the bank's CEO Jamie Dimon has long been skeptical toward cryptocurrencies. But, as he stated in May, despite this, JPMorgan will not prohibit bitcoin in its operations.