JPMorgan to Accept Bitcoin and Ethereum as Loan Collateral by Late 2025
JPMorgan Chase plans to let institutional clients use Bitcoin (BTC) and Ethereum (ETH) as collateral for loans by the end of 2025, according to Bloomberg. The global program will rely on a third-party custodian to safeguard pledged crypto assets, marking one of Wall Street’s most significant steps toward digital-asset integration.
Expanding Beyond ETFs
Earlier this year, JPMorgan began accepting crypto-linked exchange-traded funds (ETFs) as loan collateral. The new initiative goes further — enabling clients to pledge cryptocurrencies themselves rather than tokenized securities. This shift could improve liquidity access for institutions that prefer to retain their long-term crypto holdings instead of selling them for cash.From Criticism to Adoption
The move carries both symbolic and practical significance for the world’s largest bank. CEO Jamie Dimon, once one of Bitcoin’s harshest critics, famously dismissed it as “worse than tulip bulbs.” Yet rising institutional demand and greater regulatory clarity have softened his stance. Recently, Dimon stated he would “defend your right to buy Bitcoin,” even while personally doubting the asset’s long-term value.Behind the scenes, JPMorgan has been steadily expanding crypto-related services — from trading support for clients to blockchain-based payment rails. The upcoming collateral program further blurs the line between traditional banking and digital finance.
An Industry-Wide Trend
JPMorgan’s decision follows similar initiatives by major institutions such as Morgan Stanley, State Street, BNY Mellon, and Fidelity, which have all broadened their crypto custody and trading operations. Recent regulatory developments — including progress on the US crypto-market structure bill and comparable frameworks abroad — have lowered key compliance barriers, making it easier for banks to engage with digital assets.Symbol of Wall Street’s Shift
By enabling Bitcoin and Ethereum collateralization, JPMorgan sends a clear signal that crypto assets are moving from speculative tools to legitimate components of institutional finance. Analysts view the program as part of a larger transformation of credit markets, where digital assets are increasingly recognized as stable, liquid, and auditable forms of wealth.Conclusion
JPMorgan’s forthcoming program to accept Bitcoin and Ethereum as collateral marks another milestone in the merging worlds of banking and blockchain. Once openly hostile to crypto, Wall Street’s largest lender is now helping define how digital assets fit within global credit markets — a pragmatic acknowledgment that crypto has become too significant to ignore.Editorial Team — CoinBotLab