JPMorgan to Accept Bitcoin and Ethereum as Loan Collateral
JPMorgan Chase plans to allow institutional clients to use Bitcoin and Ethereum as collateral for loans by the end of 2025, reflecting a shift in the bank’s stance on digital assets.
BTC
ETH
Summary
JPMorgan Chase will allow institutional clients to use Bitcoin and Ethereum as collateral for loans by 2025. The move, relying on third-party custodians, aims to enhance liquidity access without liquidating digital asset positions, marking a significant step in institutional crypto adoption.
Terms & Concepts
- Collateral: Assets pledged by a borrower to secure a loan, which can be seized by the lender if the borrower defaults.
- Bitcoin: The first and most widely used decentralized cryptocurrency, created in 2009 by an entity known as Satoshi Nakamoto.
- Ethereum: A decentralized blockchain platform that enables smart contracts and supports its native cryptocurrency, Ether (ETH).