%JPMorganChase (NYSE: $JPM) says it plans to let trading and wealth-management clients use crypto-linked assets such as spot %Bitcoin (CRYPTO: $BTC) exchange-traded funds (ETFs) as collateral for loans.
Starting in coming weeks, the world’s largest bank will offer financing to select clients backed by shares of BlackRock’s %iSharesBitcoinTrust (NASDAQ: $IBIT), a leading crypto ETF.
JPMorgan will also factor the value of certain clients’ crypto holdings into assessments of their net worth and liquidity — putting digital assets on par with traditional securities such as stocks.
The move to consider crypto holdings comes weeks after chief executive officer (CEO) Jamie Dimon said the New York-based bank will soon allow clients to buy Bitcoin.
That’s a major turnaround from JPMorgan’s previous position against crypto and digital assets in general.
Dimon has long been one of the most vocal critics on Wall Street of cryptocurrencies, citing their use in illegal activities like money laundering.
However, Dimon’s views have softened, with him saying recently that JPMorgan needs to respond to customer demands when it comes to crypto.
JPMorgan and other institutions are under pressure to offer crypto products and services as Bitcoin and other digital assets become more accepted and mainstream.
Wealth management firms say they are seeing growing client demand for exposure to digital assets. At the same time, a growing number of crypto firms are listing on U.S. stock exchanges.
Crypto is also playing a bigger role in politics, with U.S. President Donald Trump vowing to make America the “crypto capital of the planet.”
Earlier this year, President Trump launched his own meme coin and there are now reports that his family plans to launch a Bitcoin ETF.
JPMorgan’s stock is up 10% this year and trading at $264.22 U.S. per share.
