Crypto currency has always been speculative around non users. Its origin and the way it is traded has been a topic of discussion. Most of the time. However, now the time is changing and traditional banks are recognising its usefulness and value. Recently, JP Morgan Chase turned the heads as they announced their latest development around crypto. They recently shared their plan to accept Bitcoin and Crypto ETF’s as collateral for loans.
This acceptance by a renowned institution is like a turning point for crypto. After years of cautiousness and concerns crypto is finally getting what it deserves. By giving a green light to Bitcoin and accepting crypto ETF’s, JP Morgan has sent a clear message to the market. They trust it and have confidence in its growth.
This way of accepting crypto will let investors holding significant crypto portfolios use it more real time. This way they will be able to unlock liquidity from their crypto without the need of liquidating it on a whole. 
This will legitimize crypto as a digital asset increasing its durability and store value. It will also increase its capital efficiency. Users would be able to use crypto assets to get regular currency loans. This will give them more freedom to manage their money and investments. Big name like JP Morgan bring in the trust factor. Now more institutions will come up with unique schemes and offers around crypto giving it more stability.
However, this news holds a systematic value. It aligns with the shift of sentiments around crypto. All thanks to President Donald Trump. His pledge to support crypto has aligned it with more favorable environment for traditional banks to expand their crypto offers.
There is no doubt behind the excitement of the news, however there is a catch, not one but three. JP Morgan will be adopting a highly risk mitigated framework. This means only selected Bitcoin and approved crypto ETFs held securely will be accepted. The loan amount will be given as cautious money as crypto is volatile. They will keep a check on the crypto prices on a daily basis. This is just to make sure that their money is safe.
For the crypto market, this endorsement means increased stability and mainstream adoption. It is a clear signal of normalization of crypto between global finance. As the lines between traditional banking institutions and crypto blurs, we eagerly wait to see what else lies in the future.
