Financial Times reports that JPMorgan, the world’s largest bank, is looking to issue loans with cryptographic support, which means that their clients could soon promise Bitcoin, ether or some other sample to request dollars borrowed.
The news is remarkable for a couple of reasons. The people of Crypto, he loves to point out that Jamie Dimon, the bank’s executive director, said in 2017 that he would fire any trapped employee exchanging Bitcoin for being “stupid”, so JPMorgan considers the broadcast of said product (and get involved with Stablecoins) is seen as a claim by some in the industry.
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More interesting is what JPMorgan’s movement could end up meaning for cryptographic loans. The Bank of Dimón is not Tradfi’s first company in looking for loans supported by Crypt (Cantor Fitzgerald announced a similar program last July), but it is certainly the largest.
At the end of 2024, the cryptographic loan market stood at $ 36.5 billion, 43% less than its peak of $ 64.4 billion at the height of the 2021 bull race. The loan sector was dominated by Tether, followed by Galaxy Digital and LEDN. Boards, the three companies represented 90% of the slope loans of $ 11.2 billion (excluding defi, which saw $ 19.1 billion in loans in 20 applications and 12 block chains).
I am sure that these numbers need update, considering how many cryptographic native companies have announced their market entry since then: Coinbase, Strike, Xapo Bank, Lava, Onramp and Arch, and even a own focused on the real state, to name a few.
The growth of the sector is excellent for consumers because it will force interest rates to loans supported by cryptocurrencies to decrease significantly, said Mauricio Di Bartolomeo, co -founder of the lender Bitcoin Ledn, Coindenesk in an interview in April.
“It’s a sellers market at this time,” he said. “We are lending completely guaranteed dollars north of 12.5%, with zero losses for seven years. Banks will see this and say ‘Wow, this is a great rate of performance.’ A bank will come with 12%interest.
In the future, such loans could become competitive with home equity or personal credit lines, said Di Bartolomeo. Even better, rates would not simply fall into Western countries with efficient banking systems, but throughout the world.
“Gold in a vault in Switzerland is not gold in a vault in Venezuela, but Bitcoin in Colombia is Bitcoin in Madrid is Bitcoin anywhere in the world. As a subscriber, I have uniform collaterals,” said Di Bartolomeo.
JPMorgan’s raid in the sector takes us a closer step to fulfill that vision.
