JPMorgan Chase plans to accept Bitcoin and Ethereum as loan collateral by the end of 2025, which Wall Street analysts see as institutional validation.
However, risk managers have a different view: the combination of a 24/7 volatile asset and 9 to 5 banking infrastructure creates contagion pathways that didn't exist before.
Cryptocurrency destroys these assumptions completely, as Bitcoin and Ethereum trade continuously across global exchanges.
A 10% intraday move, catastrophic for equities, qualifies as Tuesday for crypto.
When JPMorgan accepts Bitcoin as collateral for a corporate loan, it must monitor that position constantly across fragmented liquidity pools.
Author's summary: JPMorgan's acceptance of cryptocurrency as loan collateral may create new contagion pathways.