Nigeria, June 5 -- The largest US bank, JPMorgan Chase, is embarking on a daring push into the new world of virtual currencies.

In a move that bears witness to increased institutional acceptance of cryptocurrencies, the bank now allows specific customers to use crypto-tethered exchange-traded funds (ETFs) as loan collateral. The move not only adds to the pioneering position of JPMorgan but also indicates a broader financial reorientation towards the use of blockchain-based products within traditional financial services.

The first approved ETF of the bank to be traded for utilization is BlackRock's iShares Bitcoin Trust (IBIT). This closely tracked investment product seeks to offset the performance of Bitcoin. The bank's other crypto-bac...