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Investing.com -- JPMorgan Chase & Co. (NYSE:JPM), the largest bank in the U.S., is preparing to allow its trading and wealth-management clients to use certain assets tied to cryptocurrencies as collateral for loans, Bloomberg News reported Wednesday. This significant move aligns with the bank’s efforts to expand into an industry that has received backing from President Donald Trump.
In the following weeks, the bank will initiate offering financing against crypto exchange-traded funds (ETFs), starting with BlackRock Inc (NYSE:BLK).’s iShares Bitcoin Trust, according to sources close to the matter. This step signals a continued push into the crypto sector by major U.S. banks, following the Trump administration’s efforts to reduce regulatory restrictions.
The bank will also start considering the crypto holdings of its wealth-management clients when determining their overall net worth and liquidity. This approach suggests that cryptocurrencies will receive comparable treatment to other assets such as stocks, cars, or art in calculating the borrowing capacity against a client’s assets.
When asked for comment, a representative from JPMorgan chose not to respond.
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