JPMorgan Chase is preparing to take a major step into the world of digital assets. According to Bloomberg, the U.S. banking giant will allow its institutional clients to use Bitcoin (BTC) and Ether (ETH) as collateral for loans by the end of this year. This move marks a significant milestone in the bank’s growing acceptance of cryptocurrency as a legitimate part of global finance.
The program will use a third-party custodian to hold and secure the digital assets, ensuring compliance and safety for all parties involved. JPMorgan plans to make the offering available to clients worldwide, reflecting a clear shift in how traditional financial institutions view crypto assets.
JPMorgan Expands Collateral Options with Crypto and ETFs
Beyond Bitcoin and Ether, JPMorgan will also allow clients to use crypto-related exchange-traded funds (ETFs) — such as BlackRock’s iShares Bitcoin Trust — as collateral for loans. The goal is to broaden borrowing options for institutional investors and include crypto assets in wealth management assessments.
This initiative shows how digital currencies are becoming more integrated into traditional finance, offering clients new ways to leverage their holdings without selling them. By recognizing crypto as viable collateral, JPMorgan is paving the way for broader adoption among major investors.
Jamie Dimon’s Changing Perspective on Crypto
The move also highlights a notable change in attitude from JPMorgan CEO Jamie Dimon, who once dismissed Bitcoin as a “fraud” back in 2017. While Dimon remains skeptical about the intrinsic value of cryptocurrencies, the bank’s latest decision demonstrates a pragmatic approach toward meeting client demand and adapting to market trends.
JPMorgan’s growing involvement in crypto underscores a broader Wall Street evolution — from skepticism to strategic participation — as digital assets gain legitimacy in institutional finance.
