JPMorgan Chase, the largest bank in the United States by assets, will soon allow its clients to use cryptocurrency ETFs as collateral for loans, Bloomberg reported on June 4.
The bank will initially accept BlackRock's iShares Bitcoin Trust (IBIT), the largest spot Bitcoin ETF. The service is expected to launch in the coming weeks.
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JPMorgan will also take clients' cryptocurrency holdings into account when calculating their net worth, treating digital assets similarly to traditional investments to determine eligibility for loans.
This move is in line with the bank's growing cryptocurrency initiatives, which include its stablecoin JPM Coin.