How and why JP Morgan changed one of its oldest policies for SpaceX IPO
JPMorgan Chase is relaxing its long-standing 135-day waiting period for lending against shares of newly public companies to better compete for business in the booming tech and AI sectors. The bank made a notable exception for SpaceX's IPO and is considering similar flexibility for future high-profile listings like Anthropic.
Why it matters
This policy shift highlights how major financial institutions are aggressively adapting their risk models to capture the wealth generated by the AI and aerospace boom, directly impacting how tech employees manage their equity-based compensation.
JPMorgan Chase, the largest financial institution in the US, is easing its restrictions on lending against shares owned by company workers and early backers following recent stock market debuts, aiming to capture business from the immense wealth being generated across the tech sector. According to a report by Financial Times, JPMorgan has historically maintained a rule preventing clients from using stock in newly public firms as loan collateral within the initial 135 days of a listing.Ahead of SpaceX's high-profile initial public offering (IPO) in June, the lender informed internal banking teams that it would permit borrowing against equity in Elon Musk’s aerospace and artificial intelligence venture well ahead of that timeline, the report said, citing individuals familiar with the decision.Chasing the AI and aerospace boomJPMorgan generated $75 million in fees for its role in the SpaceX debut.
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