-
JPMorgan plans to allow institutional clients to use BTC and ETH as collateral for loans by the end of 2025.
-
The program will rely on a third-party custodian to safeguard pledged crypto assets.
-
The move reflects Wall Street’s growing adoption of digital assets in mainstream finance.
JPMorgan Expands Crypto Integration
JPMorgan Chase will soon let institutional clients pledge bitcoin and ether as collateral for loans, Bloomberg reported Friday. The global program is expected to launch by the end of 2025, representing one of the most significant steps by a major U.S. bank toward integrating crypto into traditional lending.
The initiative will rely on an external custodian to hold pledged digital assets, ensuring regulatory compliance and security.
Bringing Crypto Into Traditional Lending
The move builds on JPMorgan’s earlier acceptance of crypto-linked ETFs as collateral. By allowing institutions to use the cryptocurrencies themselves, the bank aims to make it easier for clients to unlock liquidity without liquidating long-term crypto holdings.
A Shift in Perspective
The change marks a symbolic shift for JPMorgan and CEO Jamie Dimon, who once called bitcoin “worse than tulip bulbs.” Dimon has since softened his tone, saying he supports clients’ right to buy bitcoin even while maintaining caution.
JPMorgan’s move comes as other major financial firms — including Fidelity, BNY Mellon, and Morgan Stanley — also expand crypto services amid clearer regulations in the U.S. and abroad.
