While rumors had already surfaced a few months ago, a new report indicates that JPMorgan is preparing to launch loans secured by cryptocurrencies. What is the situation?
JPMorgan will allow borrowing against cryptocurrencies by the end of the year
When it comes to the lack of consistency between banks’ statements about cryptocurrencies and their actions in this industry, JPMorgan is a prime example. Last May, we 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 secured by cryptocurrencies by the end of the year.
Citing sources close to the matter, the report indicates that this offer 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 information, this echoes a Financial Times report published last July, which also mentioned similar plans. In June, Bloomberg also reported on work on this Lombard credit model, this time with shares of BlackRock’s IBIT ETF.
Therefore, even if we still have to wait for official confirmation, the rumors are becoming more and more specific as sources cross-reference each other, and the launch of such a product would mark a major turning point.
In the meantime, the price of BTC stands at $111,300 at the time of writing, stable over the last 24 hours, while ETH is trading at $3,930, down 1.3%.
