Think Banks Don’t Move Markets? Bitcoin’s DeFi Hopes May Be Crushed by TradFi’s Collateral Grab

Core Insights - Wall Street is increasingly integrating cryptocurrencies like Bitcoin and Ethereum into traditional financial systems, with JPMorgan and Fidelity leading the charge in offering crypto-backed loans and trading options [1][3][4] Group 1: Institutional Developments - JPMorgan is set to allow institutional clients to use Bitcoin and Ethereum as collateral for loans, which will streamline the process and reduce the need for liquidating positions during cash needs [3][4] - The integration of crypto into established collateral workflows signifies a shift towards mainstream acceptance and utilization of digital assets within traditional finance [3][4] Group 2: Retail Access and Trading - Fidelity has added Solana to its trading platform, making it accessible alongside other major cryptocurrencies, which could enhance trading activity and reduce friction for users already holding assets with the firm [5] - The presence of deep order books for Solana during peak trading hours suggests that retail trading dynamics may shift, impacting how quickly spreads stabilize during market fluctuations [6]