JPMorgan will allow the use of Bitcoin and Ether as loan collateral

• Bank to accept BTC and ETH as institutional collateral
• Global program expands digital asset services
• Wall Street Steps Up Cryptocurrency Integration

JPMorgan Chase plans to allow institutional clients to use bitcoin (BTC) and ether (ETH) as collateral for loans by the end of 2025, furthering Wall Street's expansion into the cryptocurrency market. The new program brings digital assets closer to the traditional banking system, offering more liquidity options for institutional investors.

According to information released , the service will be launched globally and will feature a third-party custodian responsible for keeping deposited crypto assets safe. The initiative follows the bank's gradual integration with the sector, after JPMorgan began accepting cryptocurrency-linked ETFs as collateral in credit transactions earlier this year.

With the new model, institutions will be able to directly pledge their Bitcoin and Ethereum, without having to sell or convert their positions into intermediary financial products. This change should facilitate access to liquidity for funds and companies that hold large reserves of long-term cryptocurrencies.

The move also reflects a shift in stance by JPMorgan CEO Jamie Dimon himself. The executive, who in the past called Bitcoin "worse than tulip bulbs" and associated it with money laundering, has adopted a more pragmatic approach. In recent months, he stated that he "will defend people's right to buy Bitcoin," even though he maintains reservations about the asset.

JPMorgan has been quietly expanding its services to the cryptocurrency market, offering custody and financing products to institutional clients. Meanwhile, other financial institutions, such as Morgan Stanley, State Street, BNY Mellon, and Fidelity, have also expanded their digital asset and crypto custody operations, taking advantage of a clearer regulatory environment in the US and Europe.

JPMorgan's move reinforces the trend toward integration between the traditional financial system and the crypto market, which is gaining momentum with evolving compliance rules and the advancement of bills aimed at structuring cryptocurrency markets. The program is expected to be officially launched later this year, solidifying the bank's position as a key intermediary between traditional finance and digital assets.