JPMorgan to accept crypto as collateral for clients #
JPMorgan Chase plans to allow select institutional clients to use cryptocurrency as collateral for credit lines and trading exposure, according to a Bloomberg report cited by Finextra. The move represents one of the most notable steps by a major U.S. bank toward integrating digital assets into its traditional lending and risk-management operations
Under the planned framework, digital assets would be held with approved custodians, while JPMorgan would apply conservative haircuts and collateral requirements to manage volatility risk. The initiative is expected to start with bitcoin and ether, and would initially be limited to large corporate and hedge-fund clients
Analysts say the decision highlights growing institutional acceptance of crypto as a financial asset class, even as banks maintain cautious exposure. It also signals JPMorgan’s ongoing effort to expand its blockchain and tokenisation strategy, complementing its existing JPM Coin and Onyx blockchain initiatives.