While rumors had already surfaced a few months ago, a new report indicates that JPMorgan is set to launch cryptocurrency-backed loans. What’s the story?
JPMorgan will allow customers to borrow funds using cryptocurrency as collateral by the end of the year
When it comes to the inconsistency between banks’ statements regarding cryptocurrencies and their actual actions in this industry, JPMorgan is a prime example. Last May, we actually took a closer look at this “love-hate” relationship.
In any case, the largest bank in the United States was back in the news on Friday after Bloomberg reported that JPMorgan was preparing to offer loans backed by cryptocurrencies by the end of the year.
Citing sources familiar with the matter, the report states that this offering would be available globally and that Bitcoin (BTC) and Ether (ETH) could be used as collateral. For now, the bank has declined to comment on the matter.
Despite the lack of additional details, this echoes a Financial Times report published last July, which also mentioned similar plans. In June, Bloomberg had also reported on work related to this Lombard loan model, this time involving shares of BlackRock’s IBIT ETF.
Therefore, even though we must still await official confirmation, the rumors are becoming increasingly specific as sources corroborate one another, and the launch of such a product would mark a major turning point.
Meanwhile, the price of BTC stands at $111,300 at the time of writing, stable over the past 24 hours, while ETH is trading at $3,930, down 1.3 percent.
