JPMorgan Embraces Bitcoin and Ethereum as Loan Collateral in Major Banking Shift

In a significant reversal of its long-standing skepticism, JPMorgan Chase is set to accept Bitcoin (BTC) and Ethereum (ETH) as collateral for institutional loans, with the initiative expected to roll out by the end of 2025. This move, driven by mounting client demand and a shifting regulatory landscape under the Trump administration, will allow large investors and corporations to borrow against their crypto holdings without liquidating them, using third-party custodians to safeguard the digital assets.

The policy builds on JPMorgan's earlier experiments, such as accepting crypto-linked ETFs like BlackRock's iShares Bitcoin Trust (IBIT) as collateral in June 2025, and now extends to direct holdings of BTC and ETH. According to sources, the assets will be valued in real-time through JPMorgan's risk management systems, integrating data from regulated custodians and major exchanges. This development aligns with a broader trend on Wall Street, where competitors like Morgan Stanley, BNY Mellon, State Street, and Fidelity are accelerating their digital asset initiatives, with Morgan Stanley planning to open its E*Trade platform to crypto traders by mid-2026.

JPMorgan CEO Jamie Dimon, who once dismissed Bitcoin as "a pet rock," has adopted a pragmatic stance, telling investors that while he remains skeptical of its intrinsic value, the bank must "meet clients where they are." The timing coincides with Bitcoin reaching an all-time high above $126,000 and Ethereum hovering around $3,950, fueled by institutional inflows and pro-crypto policies. Regulatory clarity from regions like the European Union, Singapore, and the United Arab Emirates, along with a pending U.S. Crypto Market Structure Bill, has emboldened banks to integrate digital assets into traditional finance frameworks.

This shift is seen as a symbolic acknowledgment that crypto has become too integrated to ignore, with one executive noting, "Crypto isn't replacing the financial system – it's becoming part of it." The program currently applies only to select institutional clients under strict custody and compliance conditions, excluding retail investors for now.