DTCC: Starting April 30, companies will no longer be able to use cryptocurrency investment vehicles as collateral

According to a document released by DTCC, starting from April 30, 2024, as part of the annual credit limit renewal, DTCC will implement the following changes to modify the collateral value of certain securities, which may affect the position value applicable to Collateral Monitor:

1. The collateral valuation of corporate notes or bonds rated B1 to B3 will be raised from 50% to 70%;

2. Any investment tool that includes Bitcoin or any other cryptocurrency as a underlying investment will not be given collateral value and therefore will be subject to a 100% deduction.