Major financial institutions are reshaping crypto collateral frameworks. JPMorgan's new lending policy now accepts Bitcoin and Ethereum at 40-50% LTV, effectively unlocking $800 billion to $1 trillion in dormant liquidity without forced selling. Institutions are seizing this opportunity—borrowing at 6-8% rates against their crypto holdings to redeploy capital elsewhere, sidestepping taxable events in the process. What's striking is the competitive wave this triggered: Goldman Sachs and Morgan Stanley are rolling out comparable programs, signaling institutional appetite has shifted from speculation to sophisticated collateral strategies. This pivot represents a fundamental change in how traditional finance engages with digital assets.