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JPMorgan has begun permitting institutional clients to use Bitcoin (BTC) and Ethereum (ETH) as direct collateral for U.S. dollar loans.
Quinten Francois announced this move, which allows institutions to unlock liquidity using their crypto holdings without selling, thus avoiding capital gains tax. Clients can now borrow U.S. dollars against BTC and ETH, providing a new mechanism for unlocking value while maintaining crypto exposure.
JPMorgan’s adoption of crypto-backed lending underscores the shifting dynamics in digital asset markets, as institutional strategies increasingly incorporate Bitcoin and Ethereum for liquidity solutions. These developments follow earlier observations of Bitcoin’s resilience amid price fluctuations, as detailed in the analysis of its movement below the adjusted realized price this cycle. Similarly, Ethereum’s prominent role continues to be highlighted, particularly regarding its sustained dominance in DeFi applications, reflecting enduring confidence in leading cryptocurrencies as foundational assets.