JPMorgan Chase & Co. is reportedly working to allow its institutional clients to use Bitcoin (BTC) and Ether (ETH) as collateral for loans by the end of this year.
The decision marks a notable step for the largest U.S. bank, particularly given CEO Jamie Dimon’s history of bashing the crypto space, and is the latest sign of Wall Street’s continued embrace of digital assets.
BTC And ETH As Loan Collateral
According to a Bloomberg report on Friday citing unnamed sources familiar with the matter, the program will be offered worldwide and will rely on third-party custodians to hold the pledged tokens.
Under the new initiative, customers could post crypto held by an approved custodian against credit lines or structured loans, letting banks manage exposure without directly taking custody of digital assets.
JPMorgan had previously taken steps to integrate crypto into its core lending activities. Earlier this year, the bank started accepting crypto-linked exchange-traded funds (ETFs) as collateral, with the new program letting clients pledge the crypto holdings themselves instead of ETF shares.
Regulatory Shift Fuels Wall Street’s Crypto Expansion
The move comes as CEO Jamie Dimon, who once described BTC as a money laundering tool and a “fraud,” has increasingly softened his stance on the top crypto amid growing customer demand as regulatory hurdles ease under the crypto-friendly Trump administration.
Notably, major legislative efforts in the United States, including progress on a crypto markets structure bill, and overseas have lowered some compliance friction for banking institutions mulling crypto exposure.
In August, Morgan Stanley allowed its wealth advisors to pitch some spot BTC ETFs to select clients. Earlier this month, the bank confirmed it was easing restrictions on crypto investments, allowing all wealth clients, including those with retirement accounts, to have access to the asset class.
Other Wall Street giants, including Fidelity, BNY Mellon, and State Street, have also expanded their crypto offerings.
Source: https://zycrypto.com/tradfi-giant-jpmorgan-to-let-institutional-clients-pledge-bitcoin-and-ether-as-collateral-for-loans/
