Onramp Bitcoin Media The Banks Are Here — JPMorgan Just Made Bitcoin Collateral
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Oct 27, 2025 JPMorgan's groundbreaking move to accept Bitcoin and Ethereum as collateral is a game changer for institutional finance. The fallout from Fortress Trust highlights urgent lessons about single-custody risk. Meanwhile, a wave of crypto mergers and acquisitions is underway, driven by ETF integration. Discussions around stablecoins reveal their potential to disrupt cross-border remittances, with Western Union exploring new avenues. Tether's ambitious plans intertwine AI and banking, sparking debates about future infrastructure and the role of digital assets.
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Banks Embrace Crypto Collateral
- JPMorgan will accept BTC and ETH as loan collateral, signaling institutional acceptance and a shift in acceptable collateral classes.
- This move brings banks closer to underlying custody and could spur Bitcoin-backed lending and new financial services.
Cautiously Approach Crypto-Backed Loans
- Be cautious when lending against volatile crypto and watch how JPMorgan's approach unfolds before replicating it.
- Validate custody, margining, and operational processes before using crypto as loan collateral.
Single Custodian Risk Is Real
- Single-custodian failures like Fortress/Prime Trust show concentrated custody risk and insolvency hazards.
- Market demand will push institutions toward multi-institution custody and fault-tolerant solutions over time.