JPMorgan Chase, the leading U.S. banking institution by total assets, is rolling out a new service that will make it possible for some of its clients to borrow money while using cryptocurrency-based exchange-traded funds (ETFs) as collateral, according to a Wednesday report by Bloomberg.
The banking titan will initially start supporting loans backed by BlackRock's IBIT, which is the most successful ETF by a large margin.
Until now, JPMorgan would only allow such loans on a case-by-case basis, but such a practice will be expanded.
As reported by U.Today, JPMorgan CEO Jamie Dimon, who is known as one of the most stubbornly anti-Bitcoin voices in traditional finance, previously stated that he would allow clients to buy the leading cryptocurrency despite his personal aversion to it.
In a Q1 13F filing, JPMorgan revealed that it had some exposure to Bitcoin ETFs.
Vladislav Sopov
U.Today Editorial Team