So large US banks like JPMorgan seems to have started accepting crypto (primarily BTC it seems) as collateral for loans. If I am understanding this correctly… There seems to be a margin call if prices drop significantly for the bank would require you to add more collateral or pay a portion of the loan.
Hypothetically what happens if you get a loan equivalent in value of bitcoin … let’s say a loan for $80,000 and you use 1 BTC has collateral at current price of ~$79K. But several weeks or months later BTC price jumps to 90K or 100K making your collateral worth more than the loan? Can’t find anything on that online.
Thanks in advance
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