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Sohrab KhawasSohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Oct 24, 2025 11:52 UTC
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JPMorgan to Accept Bitcoin and Ether as Loan Collateral By Year’s End
JPMorgan will soon let institutional clients use Bitcoin and Ether as collateral for loans.
The program uses a third-party custodian, ensuring secure handling of pledged digital assets.
Other Wall Street giants like Morgan Stanley and BlackRock are also expanding crypto adoption.
Global banking giant JPMorgan Chase is preparing to let institutional clients use Bitcoin and Ether as collateral for loans by the end of this year. The decision marks one of the biggest steps yet by a major U.S. bank toward blending traditional finance with the fast-growing crypto world.
Bitcoin and Ether as Loan Collateral
According to internal sources cited by industry insiders, JPMorgan’s upcoming policy will allow select institutional clients to pledge BTC and ETH holdings as collateral for fiat loans, similar to how they use stocks, bonds, or gold.
Meanwhile, the tokens will be held securely by a third-party custodian, ensuring that JPMorgan doesn’t directly manage the crypto assets but still accepts their value as loan security.
This move is surprising given JPMorgan’s past stance on crypto. CEO Jamie Dimon once called Bitcoin a “hyped-up fraud,” but in recent years, his tone has softened. While he still has doubts, he now says people should have the freedom to buy and hold crypto.
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Wall Street Deepens Its Crypto Push
JPMorgan isn’t alone. Other financial giants like Morgan Stanley, Fidelity, State Street, and Bank of New York Mellon have all expanded their crypto-related offerings. Regulatory easing under the Trump administration has made it easier for banks to experiment with digital assets.
Morgan Stanley, for example, plans to let E*Trade customers buy popular cryptocurrencies next year, while BlackRock has begun allowing investors to swap Bitcoin for ETF shares tracking its price.
JPMorgan Too Leads Crypto-Backed Lending
If JPMorgan’s plan works, it could inspire other banks to follow, opening the door for broader use of cryptocurrencies in lending markets.
With Bitcoin recently touching $112,000, demand for crypto-backed financial services is growing fast. By accepting digital assets as collateral, JPMorgan could help bring more institutions into crypto and push it deeper into the global financial system.
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FAQs
Yes, JPMorgan plans to let institutional clients pledge BTC and ETH as collateral for fiat loans by the end of this year.
Digital assets will be held by a third-party custodian, ensuring safe storage while still serving as loan collateral.
The bank aims to meet growing institutional demand and integrate digital assets into traditional finance responsibly.
If successful, other major banks may adopt crypto-backed lending, deepening digital assets in global finance.
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