JPMorgan to Accept Bitcoin and Ether as Loan Collateral by Year-End

JPMorgan Chase & Co. is preparing to let institutional clients use their Bitcoin and Ether holdings as collateral for loans by the end of 2025, marking a significant step in the deepening integration of cryptocurrencies into the traditional financial system.

According to sources familiar with the matter, the program will operate globally and involve a third-party custodian responsible for securing the pledged digital assets. The initiative follows JPMorgan’s earlier move to accept crypto-linked exchange-traded funds (ETFs) as collateral for financing. A spokesperson for the bank declined to comment.

A Turning Point for JPMorgan

The development underscores how rapidly digital assets are becoming part of Wall Street’s core financial infrastructure. With Bitcoin’s rally this year and the Trump administration rolling back regulatory restrictions, major banks are expanding their engagement with crypto markets.

For JPMorgan, this represents both a symbolic and practical shift. Once a vocal critic of cryptocurrencies, CEO Jamie Dimon famously called Bitcoin a “hyped-up fraud” and a “pet rock.” Now, the same digital tokens are being recognized as legitimate collateral — alongside stocks, bonds, and gold.

In recent remarks, Dimon has softened his tone while maintaining skepticism. Speaking at JPMorgan’s investor conference in May, he said, “I don’t think we should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin — go at it.”

Wall Street’s Growing Comfort with Digital Assets

JPMorgan’s move mirrors a broader trend across the financial sector as regulatory pressure eases and digital asset markets mature. Morgan Stanley, for example, plans to allow users of its E*Trade retail platform to access popular cryptocurrencies starting in the first half of next year. Other traditional institutions, including State Street, Bank of New York Mellon, and Fidelity, have launched crypto custody and related services.

A recent regulatory update also enabled firms such as BlackRock to let investors exchange Bitcoin directly for ETF holdings that track the cryptocurrency, further blurring the lines between traditional and digital finance.

From Dormant Project to Rising Demand

JPMorgan initially explored lending against Bitcoin back in 2022, though the project was later shelved. The renewed push reflects growing institutional demand for crypto support as the market has expanded and regulatory frameworks have become clearer.

Regions such as the European Union, Singapore, and the United Arab Emirates already have live crypto regulations, while the U.S. Congress continues to debate a comprehensive market structure bill. Despite a recent selloff, Bitcoin reached a new all-time high of $126,251 earlier this month — a signal that institutional appetite remains strong.