TLDR

Wells Fargo has started buying Bitcoin in large amounts and now offers Bitcoin-backed loans to institutional and wealth management clients
Binance founder Changpeng Zhao told traders to stay strong while US banks load up on Bitcoin during market panic selling
Clients can use Bitcoin or spot Bitcoin ETFs as collateral to get loans without selling their crypto holdings
The move comes as regulatory clarity improved in 2025, making it safer for banks to offer crypto products
On-chain data shows 655,498 BTC is currently held on Binance as traders return tokens to the exchange

Wells Fargo has made two major moves in the crypto space. The bank started purchasing Bitcoin in large quantities last week. It also launched a new loan program that accepts Bitcoin as collateral.

BREAKING: Wells Fargo just purchased $383 million worth of Bitcoin.

U.S. BANKS ARE LOADING UP pic.twitter.com/GGHkICiFsk

— CEO (@Investments_CEO) January 9, 2026

The bank now allows select institutional and wealth management clients to use Bitcoin or spot Bitcoin ETFs to secure loans. This lets customers access cash without selling their crypto holdings.

Binance founder Changpeng Zhao responded to Wells Fargo’s Bitcoin purchases on social media. He pointed out that US banks were buying Bitcoin while many traders were panic selling. Zhao encouraged crypto holders to remain strong during the current market volatility.

Wells Fargo manages nearly $2 trillion in assets. The bank’s decision to accept Bitcoin as collateral marks a shift in how traditional banks view digital assets. Bitcoin now functions as more than just a speculative investment within the regulated banking system.

The loan program works by letting eligible clients pledge Bitcoin or approved spot Bitcoin ETFs as collateral. Clients can then unlock liquidity from their crypto holdings. The structure maintains compliance with existing financial regulations.

Traditional Banks Enter Crypto Market

Wells Fargo’s move reflects a broader trend among major financial institutions. Large banks that once avoided or dismissed crypto are now exploring digital asset products. The shift comes as high-net-worth individuals and institutional investors show growing interest in crypto services.

The timing aligns with improved regulatory clarity in the United States. Legislative developments in 2025 established clearer standards for custody, compliance, and risk management of digital assets. These changes reduced legal uncertainty for banks offering crypto-linked products.

Market reactions have been mixed but largely positive. Many in the crypto community view the announcement as positive for Bitcoin’s long-term adoption. Some skepticism remains around eligibility requirements, collateral ratios, and access limitations.

Bitcoin Holdings on Exchanges

Current on-chain data reveals market dynamics during this period. Binance currently holds 655,498 BTC on its platform. Traders have been returning tokens to the exchange as market uncertainty continues.

Wells Fargo’s Bitcoin purchases occurred while many individual traders were selling their holdings. The contrast between institutional buying and retail selling highlights different investment strategies during volatile periods.

The bank’s acceptance of Bitcoin as loan collateral gives the cryptocurrency a functional role beyond trading. This places Bitcoin alongside traditional assets like real estate, equities, and bonds in terms of financial utility.

By integrating both direct Bitcoin holdings and ETFs into its collateral framework, Wells Fargo expands access to crypto-backed loans. The approach allows the bank to serve clients while working within established financial compliance structures.

Wells Fargo’s Bitcoin purchases and new loan program come as volatility affects crypto prices. The bank’s actions suggest confidence that Bitcoin has matured enough for risk-managed lending environments. Current data shows Binance holds 655,498 BTC as traders navigate the uncertain market conditions.

The post Wells Fargo Buys Bitcoin and Launches Crypto-Backed Loans as CZ Calls for Calm appeared first on CoinCentral.

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Filed under: News - @ January 12, 2026 7:23 am