Investing
JPMorgan Sees Frequent-Flyer Points as Alternative for Investors
- Rewards would be bought and sold like stocks or commodities
- JPMorgan is ‘creating an asset class,’ an executive says
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JPMorgan Chase & Co. wants to help turn airline and hotel loyalty points into an asset akin to stocks or corn futures.
The bank is working with Affinity Capital Exchange to let companies turn rewards programs into a standardized, exchangeable currency to be traded by institutional investors and used as collateral to raise capital, according to a statement Thursday. Through the partnership, massive loyalty programs can be converted into pieces, or “reserve points,” sold to investors like hedge funds or banks on the ACE marketplace, and later traded on the same venue.