Market Watch

JPMorgan to Let Institutional Clients Pledge BTC and ETH as Loan Collateral by Year-End

JPMorgan Chase plans to permit institutional clients to use bitcoin and ether holdings as collateral for loans by the end of the year, as Wall Street pushes deeper into cryptocurrencies. The program will be offered globally and will rely on a third-party custodian to safeguard the pledged assets, Bloomberg reported on Friday, citing people familiar with the matter.

Previously, the bank had already taken steps to integrate crypto into its core lending operations. Earlier this year, JPMorgan began accepting crypto-linked ETFs as collateral, with the new program letting clients pledge the cryptocurrencies themselves rather than ETF shares. The change could make liquidity against long-held crypto positions easier to access for institutions that prefer not to sell.

For JPMorgan, the move is both symbolic and functional. The bank whose CEO, Jamie Dimon, once dismissed Bitcoin as a money-laundering tool and “worse than tulip bulbs,” has steadily pivoted as client demand and regulatory clarity have increased. Dimon has softened his public posture in recent months — saying he will “defend your right to buy bitcoin” even as he voiced reservations — while the bank has quietly broadened crypto services for trading and financing clients.

Other major financial firms have also been accelerating similar offerings, and regulators’ evolving stance has helped clear a path. Morgan Stanley, State Street, BNY Mellon, and Fidelity have recently expanded their crypto custody, trading, or product lines. Meanwhile, legislative moves in the U.S., including work on a crypto markets structure bill, and abroad have reduced some compliance friction for banks weighing crypto exposure.

Terron Gold

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