JP Morgan to allow Bitcoin ETF collateralized lending, to include cryptocurrency in net asset valuation

Bloomberg reported on the 4th (local time) that JP Morgan, the largest bank in the United States, plans to offer lending services that accept cryptocurrency-related assets such as Bitcoin ETFs as collateral.
This is noteworthy as JP Morgan, the largest of the traditional financial institutions in the United States, has begun to treat cryptocurrency-based assets as if they were real assets.
JPMorgan will reportedly offer crypto-backed loans to trading and asset management clients within weeks
In the initial phase, the preferred option will be BlackRock's iShares Bitcoin Trust, which has net assets of $70.1 billion and is the largest physical Bitcoin ETF in the United States.
In addition, JP Morgan will also consider the amount of cryptocurrency held when assessing the net worth of its clients, and will treat digital assets in the same way as traditional assets.
This could affect the criteria that determine how much you can borrow.
JP Morgan will issue its own stablecoin, JPM Coin, in 2020
The company has also revealed that it holds shares in various Bitcoin ETFs in 2024. However, CEO Jamie Dimon
Dimon remains skeptical of Bitcoin. In May, he offered a service that would allow customers to buy Bitcoin.
While revealing his plans to start smoking, he also said, "I encourage people not to smoke, but I respect your right to smoke. The same goes for Bitcoin," and expressed his support for investing in Bitcoin.
The decision by JP Morgan represents a shift in the financial industry to meet these policy changes and market demand.
This is seen as a prime example and is interpreted as a signal that cryptocurrencies are no longer on the periphery of the financial system, but are moving to its center.