JPMorgan Opens Door for Clients to Use Bitcoin and Ether as Loan Collateral

JPMorgan to Allow Institutional Clients to Use Bitcoin and Ether as Collateral

JPMorgan Chase is planning to let institutional clients pledge their bitcoin (BTC $111,605.32) and ether (ETH $3,938.43) holdings as collateral for loans by year-end, according to Bloomberg.

The tokens pledged under the program will be protected by a third-party custodian, expanding on JPMorgan’s previous efforts to accept crypto-linked ETFs as loan collateral.

The move underscores Wall Street’s increasing adoption of digital assets in core lending operations. With Bitcoin hitting record highs this year and regulatory clarity improving, major banks are moving from cautious observation to actively integrating crypto into financing services.

Other leading financial institutions, including Morgan Stanley, State Street, and Fidelity, are also deepening their crypto offerings by providing retail access and custody solutions, the report noted.