JPMorgan to Allow Major Clients Use Bitcoin, Ethereum as Loan Collateral

JPMorgan Chase plans to launch a new program that will allow institutional investors to use Bitcoin and Ethereum as loan collateral by late 2025.

The initiative will engage a third-party custodian to manage and protect the pledged crypto assets. This marks one of the most direct integrations of cryptocurrencies into the bank’s lending operations.

From Crypto ETFs to Direct Collateral

In June 2025, JPMorgan implemented a policy allowing crypto-linked ETFs to serve as collateral in lending agreements. The upcoming move takes this further by allowing clients to use the actual cryptocurrencies instead of ETF shares.

Although he continues to express skepticism about cryptocurrencies, Dimon recently stated that he will “defend your right to buy Bitcoin.”

Under his leadership, JPMorgan has quietly broadened its crypto services, from trading support to financing solutions tailored to digital asset markets.

Rising Institutional Interest Across Wall Street

JPMorgan is not alone in its pivot toward crypto integration. Other major financial players such as Fidelity, Morgan Stanley, BNY Mellon, and State Street have all expanded their crypto custody, trading, and product offerings in recent months.

These moves signal a pronounced trend among traditional institutions toward integrating digital assets into conventional finance. This evolution is driven by clients’ growing demand for diversified and sophisticated investment instruments.

Regulation Clears the Path Forward

Evolving regulatory frameworks have helped reduce uncertainty around crypto operations. In the United States, ongoing discussions about a crypto market structure bill are shaping up to create a clearer legal environment for banks.

Similar progress abroad has also lowered compliance barriers, enabling large financial institutions to experiment safely with blockchain-based lending and asset management services.