JPMorgan Chase & Co. is set to allow institutional clients to use Bitcoin and Ether holdings as collateral for loans by year's end. This move marks a deeper integration of cryptocurrency into Wall Street practices. The global program will use a third-party custodian for security.
JPMorgan Chase & Co. plans to permit its institutional clients to pledge Bitcoin and Ether as collateral for loans, with the initiative launching by the end of 2025. This development represents a significant step in Wall Street's growing embrace of cryptocurrency, building directly on the bank's prior acceptance of crypto-linked exchange-traded funds (ETFs) as collateral.
The program will be available globally and depends on a third-party custodian to securely hold the pledged digital tokens, according to individuals familiar with the discussions. While JPMorgan has historically been cautious about direct cryptocurrency involvement—its CEO Jamie Dimon has publicly criticized Bitcoin—this policy shift underscores evolving industry dynamics amid regulatory progress and market maturation.
This expansion could facilitate easier access to liquidity for institutions holding crypto assets, potentially encouraging broader adoption on traditional finance platforms. However, details on specific loan terms or eligible client segments remain undisclosed in available information.