A key line of defense in the traditional financial system has just been broken.

JPMorgan officially announced that Ethereum has been formally included in the list of qualified collateral—how significant is this signal? Just look at how Europe is doing it. European banking giants have migrated $12.5 trillion of core business to the Ethereum network. The last reservations in the US banking sector are also fading—what does this imply?

**Changes are happening simultaneously across three dimensions**

First is the shift in identity. Ethereum has completely shed its label as an "emerging asset" and is now recognized as "qualified financial collateral"—this is backed by the approval of top-tier global risk management systems. The weight of this recognition is evident from the attitude shift of the US banking industry.

Second is infrastructure upgrading. The Ethereum network is no longer just a public chain ecosystem; it is gradually evolving into a settlement layer connecting traditional finance and the crypto ecosystem. Imagine a pipeline for trillions of dollars in capital flows—this pipeline is increasingly resembling Ethereum.

Most critically, the valuation logic is being reorganized. Ethereum’s value support no longer relies on a single dimension—previously mainly based on in-ecosystem usage demand, now it incorporates three new dimensions: institutional collateral demand, network settlement demand, and interest-bearing asset demand. This constitutes a completely different valuation framework.

**Capital flows will occur in phases**

In the short term, the status of qualified collateral will unlock hundreds of billions in institutional lending demand. Traditional financial institutions seeking financing now have a new collateral option.

In the medium term, the asset-liability structures of traditional financial institutions will undergo systematic increases in crypto assets. This is not sporadic testing but structural adjustment.

The long-term logic is deeper—Ethereum may evolve into a key component of the global liquidity stratification system. The significance of this position is, to some extent, comparable to the moment when the US dollar detached from the gold standard.

**Invisible power restructuring**

The essence of this shift is not just technological adoption. When JPMorgan accepts ETH collateral, it is effectively participating in a reorganization of financial DNA. Two parallel tracks are running—one is visible technological iteration, and the other is an invisible adjustment of financial power structures. Today’s announcement is the intersection of these two tracks.

Market participants also need to reconsider: how will collateral premiums reprice these assets? How will liquidity transmission mechanisms between traditional finance and crypto markets operate? Can regulatory frameworks keep pace with this silent revolution? These are the questions to face next.