In response to a Tuesday report by the Monetary Instances, American banking behemoth JPMorgan is contemplating permitting its shoppers to borrow money towards Bitcoin (BTC) and Ethereum (ETH), the 2 largest cryptocurrencies.
Notably, the coverage change that’s presently being explored would make it doable to straight use crypto as collateral as an alternative of simply crypto-related merchandise like exchange-traded funds (ETFs).
JPMorgan, which is the most important US financial institution by complete property, may probably acquire a aggressive benefit with such a trailblazing transfer. Its key rivals, corresponding to Goldman Sachs, are but to permit borrowing money towards crypto.
The financial institution would probably use the companies of a third-party custodian for crypto-backed loans, in accordance with the report.
If the coverage finally ends up being applied, this may make a significant U-turn for the banking titan and CEO Jamie Dimon, who has been persistently hostile towards the nascent asset class.
In Might, as reported by U.Immediately, Dimon criticized the concept of the US stockpiling Bitcoin.