Bank of America will launch a Bitcoin-backed credit product, a key step in integrating cryptocurrencies with traditional banking. The initiative will allow clients to use BTC as collateral to obtain loans, generating liquidity without needing to sell their assets.
The move follows the bank’s recent shift: its wealth management divisions, including Merrill and Bank of America Private Bank, will now allow advisers to recommend Bitcoin and select crypto assets within regulated portfolios. Access to Bitcoin exchange-traded products (ETPs) has been fundamental for bringing crypto into institutional wealth management.
Until now, Bitcoin-collateralized lending was largely limited to crypto exchanges and lenders; Bank of America will bring this practice into the core of U.S. commercial banking. This positions Bitcoin as an institutionally recognized credit asset, enabling clients to leverage it as collateral and strengthening cryptocurrency’s legitimacy within traditional finance.
Source: https://x.com/coinbureau/status/1999122231696470090
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