October 30, 2025
By Our Correspondent
JPMorgan Chase has announced plans to allow institutional clients to use Bitcoin and Ethereum as collateral for loans — a move that marks a significant evolution in how Wall Street banks integrate digital assets into their core lending operations, according to Bloomberg.
Under the new collateral program, scheduled to launch by the end of this year, clients will be able to pledge Bitcoin and Ethereum against secured loans. The pledged tokens will be held by a third-party custodian to ensure compliance with the bank’s risk management standards.
This initiative builds on JPMorgan’s recent decision to accept cryptocurrency-linked exchange-traded funds (ETFs) as collateral, underscoring how traditional financial institutions are gradually expanding their exposure to digital assets amid favorable regulation and rising institutional demand.
JPMorgan representatives declined to provide additional details but emphasized that the bank now supports clients’ ability to purchase and hold Bitcoin — a stark contrast to its earlier skepticism, when its CEO once labeled cryptocurrencies a “scam.” The new policy, which recognizes Bitcoin and Ethereum as legitimate collateral on par with equities, bonds, and gold, signifies both a structural and cultural shift within the bank.
JPMorgan joins Morgan Stanley, State Street Corp., and Bank of New York Mellon Corp. in expanding cryptocurrency-related services. Analysts note that this trend was accelerated by the Trump administration’s pro-crypto stance and subsequent regulatory relaxations.
Industry leaders such as BlackRock Inc. and Fidelity Investments have already begun accepting Bitcoin as part of ETF collateral programs, while Morgan Stanley plans to enable cryptocurrency trading on its E*Trade platform by early 2026.
JPMorgan’s board first recommended the policy shift in July 2025, marking a new phase in the bank’s digital finance strategy. The move aligns with its broader blockchain initiatives, including JPM Coin, one of the first blockchain-based digital currencies backed by a major financial institution, launched in 2019.
