JPMorgan is preparing to enable its trading and wealth-management clients to use crypto exchange-traded funds (ETFs) as collateral for loans, according to a June 4 report from Bloomberg. The bank, the largest in the U.S. by assets, will initially accept BlackRock’s iShares Bitcoin Trust, which boasts $70.1 billion in net assets. Additionally, JPMorgan will factor clients' crypto holdings into their net worth assessments, treating these digital assets similarly to traditional ones when determining borrowing limits. This move aligns with JPMorgan's strategy of engaging with crypto initiatives for its clients, despite CEO Jamie Dimon's ongoing skepticism about cryptocurrencies, which he associates with gambling. The cultural and regulatory landscape around cryptocurrencies is also evolving, with the Trump administration loosening restrictions on banks involved in crypto. Recent changes include the Federal Reserve easing its previous discouragement of bank activities in stablecoins and the Office of the Comptroller's acknowledgment of banks holding digital assets in custody.

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