Michael Saylor: Large banks such as JPMorgan Chase, Citigroup, New York Mellon, and Wells Fargo have begun to lend "Bitcoin mortgages"

Michael Saylor, founder of Strategy, broke the shocking news, saying that many large banks on Wall Street have opened Bitcoin mortgages! (Summary: Michael Saylor responds to “micro strategy may be excluded from the MSCI index”: Our Bitcoin business is unique, and the index classification cannot be defined) (Background supplement: Michael Saylor commented on the decline of Bitcoin: If you want to ride a rocket, you have to bear the pressure! Announcement of a plan to buy BTC next week) In just half a year, Wall Street’s attitude towards Bitcoin has turned 180 degrees. Michael Saylor, founder of MicroStrategy (Strategy), announced at the BTC MENA conference in Dubai on the 10th that 8 of the top 10 US banks have officially provided Bitcoin mortgages. Digital assets, which Munger called “dead rat poison” back then, have now become the underlying guarantee that traditional finance is vying to bet on. Big banks rush into Bitcoin loans Michael Saylor said at the meeting that many large banks, including JPMorgan Chase, Citigroup, BNY Mellon, Wells Fargo, Bank of America, and Charles Schwab, have begun issuing credit with Bitcoin as collateral. Michael Saylor originally estimated that it would take 4 to 8 years for banks to accept Bitcoin, but in fact it only took 6 months. However, it should be noted that Michael Saylor said that “many large banks” have begun to issue credit with Bitcoin as collateral, but according to current public reports, there is only news about JPMorgan Chase “accepting BTC/ETH as collateral for loans by the end of the year at the earliest”, and quoting sources, the bank itself refused to respond, which is planned or evaluated, and is unofficially implemented. Reference: It is reported that JPMorgan plans to allow Bitcoin and Ethereum as collateral for loans by the end of the year, as soon as the end of this year! As for BNY Mellon, Wells Fargo, Citigroup, Bank of America, Charles Schwab, etc., they have all been involved in crypto custody, ETF support, or tokenization exploration, but there has been no official announcement of “fully opening up Bitcoin as general credit collateral to institutions”. Basel III reform and Trump’s push of Bitcoin to the “Tier 1 asset” The key to the comeback is the Basel III reform, which landed in July, and the Federal Reserve cooperated with the Trump administration’s deregulatory route to list Bitcoin as a “Tier 1 asset (Tier-1 Asset)” on the bank’s balance sheet, removing high capital reserve requirements. Michael Saylor described the move as a macro, political and structural transformation. Low-interest leverage impacts the DeFi ecosystem Traditional banks rely on capital cost advantages to launch “dimensionality reduction strikes”. Currently, the annual interest rate of Bitcoin loans on the bank side is 4% to 6%, and the loan-to-value ratio is (LTV) 50% to 70%; On-chain DeFi protocol interest rates are still above 8% on average, and they also carry smart contract risks. Large custodian banks are taking advantage of asset security to quickly absorb institutional and whale customers. The most direct examples include: JPMorgan Chase & Co. set up a $100 billion special credit facility in October; PNC Bank announced on the 9th that it will provide spot trading and $25 billion in loans to private banking customers. Smart Money thus gains lower leverage costs, putting head-on competitive pressure on DeFi. Related reports Michael Saylor clarified: Microstrategy did not sell Bitcoin! New buying plan will be announced next Monday, is BTC going to rebound? Gold master Peter Schiff spews out micro-strategy fraud: Michael Saylor’s Bitcoin strategy is not profitable at all “Michael Saylor: Large banks such as JPMorgan Chase, Citigroup, New York Mellon, and Wells Fargo have begun to issue “Bitcoin mortgages”” This article was first published on BlockTempo “Dynamic Zone Trends - The Most Influential Blockchain News Media”.