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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InJPMorgan has officially launched a service allowing institutional clients to pledge Bitcoin and Ethereum as direct collateral for USD liquidity via its Kinexys platform. This move enables hedge funds and corporate treasuries to access cash without triggering capital gains taxes by selling their digital assets. Leveraging blockchain technology, the platform achieves atomic settlement in under 120 seconds, significantly reducing the traditional two-day transfer window. To manage volatility, the bank applies a risk-weighted haircut of 30% to 50%, setting a maximum loan-to-value ratio of up to 70%. Assets are secured through qualified third-party custodians including Coinbase Custody and Anchorage Digital, ensuring they remain off the bank's balance sheet. This integration marks a major milestone for institutional adoption, effectively treating crypto assets as Tier-1 collateral similar to corporate bonds.