JP Morgan crypto lending report: what it means for banks – Ledger Insights
Today the Financial Times reported that JP Morgan is considering providing loans against cryptocurrency holdings, citing sources. In early June Bloomberg published a similar story saying the bank had begun accepting crypto ETFs as collateral for loans to wealthy clients. Previously, it considered using crypto holdings for net worth evaluations, but now it’s exploring loans backed directly by digital assets.
There are several important differences between crypto ETFs and native cryptocurrencies from the bank’s perspective. Crypto ETFs are technically stocks and fit nicely into existing JP Morgan systems as well as legal frameworks. With cryptocurrencies the bank has to put systems in place to technically secure its collateral,…
