JPMorgan Chase (JPM) plans to allow trading and wealth management customers use certain assets linked to cryptography, including Bitcoin (ETF) Funds (ETF), as guaranteed for loans.
From the coming weeks, the bank will offer funded funding by Ishares Bitcoin Trust (IBIT) of BlackRock, Bloomberg reported, citing familiar people on Wednesday. For some customers, JPMorgan will also take into account Crypto Holdings on assessments of net value and liquidity – putting them on equality with traditional titles such as actions.
The change occurs only a few weeks after CEO Jamie Dimon said that the bank would soon allow customers to buy Bitcoin
marking a notable turnaround of its previous hard position against digital assets. Dimon has long criticized cryptocurrencies, in particular for their use in illegal activities such as sexual traffic and money laundering.
Despite these concerns, the JPMorgan pivot highlights the growing institutional pressure to accommodate crypto as its imprint in traditional finance deepens. Heritage management companies see a wave of customer demand for exposure to digital assets. The public rating of cryptographic companies on American scholarships, combined up the interests of investors before the regulatory clarity sought, made more difficult for banks to ignore space.
There is also political pressure. US President Donald Trump back in office, federal agencies should largely alleviate cryptography regulations. This puts banks that are historically wary of the asset class in a difficult situation. Blocking access to crypto could now look like discrimination, not caution.
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