What happened?
Big financial firms are folding crypto into normal banking and brokerage products — JPMorgan is preparing to accept Bitcoin and Ethereum as loan collateral and Fidelity now offers Solana trading to eligible U.S. clients. This channels funding and access through the same rails institutions and many retail investors already use instead of purely crypto-native venues. As a result, coins may sit more on regulated balance sheets and less in decentralized protocols unless those protocols can prove clear, reliable value.
Who does this affect?
Institutional traders and asset managers gain new options to borrow against crypto holdings, reducing the need to liquidate positions for routine cash needs. Retail investors who keep accounts at big brokers get lower-friction access to tokens like Solana, which can shift where everyday flows land. Bitcoin-native DeFi projects and noncustodial protocols face tougher competition to attract liquidity unless they offer better yields, settlement certainty, or unique utility.
Why does this matter?
Putting crypto into traditional collateral frameworks changes how liquidity and risk are managed, which can compress haircuts in calm markets and lead to more predictable but wider adjustments in stressful times, helping to smooth — not necessarily amplify — forced selling. Concentrating flows through large brokers and banks can speed spread stabilization and shift market depth away from some on-chain venues, altering execution and price formation. Ultimately, whether markets become more TradFi-centric or retain strong on-chain liquidity will shape volatility, custody patterns, and where institutional and retail flows settle during big moves.