JP Morgan Embraces Crypto: New Rules for Collateral in Institutional Lending

JP Morgan’s decision to accept cryptocurrency ETFs as collateral for loans marks a significant shift, blurring the lines between traditional finance and the burgeoning crypto market. This move coincides with a broader trend of institutional investment in cryptocurrencies, as companies seek alternative forms of collateral amid uncertainty surrounding interest rate hikes by the Federal Reserve. Analysts suggest prioritizing capital preservation while strategically accumulating crypto assets.