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.
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.
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.
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.
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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