As the regulatory environment gradually becomes clearer, financial giant JPMorgan is evaluating allowing high-net-worth clients to use cryptocurrency as collateral for loans related to Bitcoin ETFs. This policy shift represents the formal inclusion of crypto assets into the asset assessment system of mainstream financial institutions, also reflecting the increasingly blurred lines between traditional finance and the Blockchain market.
According to Bloomberg, JPMorgan is considering allowing its clients to use their crypto assets as collateral for specific crypto ETF loans, such as BlackRock's Bitcoin Spot ETF (IBIT). This will break through previous "case-by-case application" limitations, providing high-asset clients with more financial flexibility:
The bank will formally include cryptocurrency holdings when calculating clients' net asset value and available liquidity, making it a basis for determining loan amounts.
This new policy is part of JPMorgan's comprehensive crypto financial services plan. Reports suggest the bank will gradually launch more crypto asset-related businesses in its trading and wealth management departments this year, further attracting young, high-asset crypto-native investors.
This shows that despite CEO Jamie Dimon repeatedly publicly criticizing Bitcoin as "worthless", the bank continues to move closer to digital assets in its actual business operations. Last month, he rarely stated at an investor day event that JPMorgan will allow clients to buy Bitcoin, but will not provide custody services.
Beyond client service relaxation, JPMorgan is also expanding its corporate reach. In May, when stablecoin issuer Circle was promoting its Initial Public Offering (IPO), the bank was chosen as one of the lead underwriters, symbolizing increased trust from traditional finance in crypto companies and highlighting JPMorgan's attempt to play a more critical role in emerging digital financial markets.
As the most focused target in JPMorgan's new strategy, BlackRock's IBIT has become the world's largest Bitcoin spot ETF, with assets under management reaching $70.1 billion. Sosovalue data shows IBIT occupies nearly 78% market share among all US Bitcoin spot ETFs, far surpassing other competitors.
From ETF approval to loan collateral relaxation, traditional finance is gradually "institutionalizing" crypto assets. On one hand, this represents significantly improved asset liquidity and compliance; on the other hand, this seemingly dilutes the decentralization ideal.
As banks, asset management giants, and regulatory agencies enter the market, the boundaries between crypto assets and traditional finance are dissolving. What applications will crypto retain in the future? Or will it ultimately become just another "commodified" financial instrument? This is worth our deep reflection.
Risk Warning:
Cryptocurrency investment carries high risks, and prices may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
US stablecoin giant Circle is about to go public (IPO), and according to Bloomberg, Circle has raised nearly $1.1 billion at a price of $31 per share. The pricing is higher than previously expected, indicating that stablecoin issuers are gaining broader recognition. The company's stock will begin trading today (6/5) on the New York Stock Exchange, with the ticker symbol CRCL.
(Circle challenges IPO again, achieves net profit despite headwinds - is stablecoin a good business?)
Circle IPO scale and valuation adjusted again, oversubscribed 25 times
Just two days ago, Circle was attempting to sell 32 million shares at a price of around $27 to $28 per share. At the highest price, Circle's fully diluted valuation would reach $7.2 billion, higher than the initially estimated $5 billion.
(Circle raises IPO scale: valuation up to $7.2 billion, BlackRock and Ark position early)
The latest pricing increases Circle's market value to $6.9 billion. Including employee stock options, restricted stock units, and warrants, the company's fully diluted valuation is approximately $8.1 billion.
Circle sold 14.8 million shares in this IPO, while existing shareholders sold 19.2 million shares. Informed sources revealed that the demand is more than 25 times the existing subscription volume when orders were stopped on Tuesday.
Circle to trade with code CRCL today
Informed sources revealed that asset management giant BlackRock intends to purchase up to 10% of the IPO shares, and Ark Invest led by Cathie Wood has also stated it will invest $150 million. This indicates that stablecoins are transforming from crypto trading tools to new-generation financial infrastructure, rapidly attracting mainstream capital.
This IPO is led by JPMorgan Chase & Co., Citigroup Inc., and Goldman Sachs Group Inc. The company's stock is expected to begin trading on Thursday (6/5) on the New York Stock Exchange, with the ticker symbol CRCL.
Risk Warning
Cryptocurrency investment carries high risk, and prices may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
