JPMorgan Chase plans to launch a new program that will allow institutional investors to use Bitcoin and Ethereum as loan collateral by late 2025.
The initiative will engage a third-party custodian to manage and protect the pledged crypto assets. This marks one of the most direct integrations of cryptocurrencies into the bank’s lending operations.
From Crypto ETFs to Direct Collateral
In June 2025, JPMorgan implemented a policy allowing crypto-linked ETFs to serve as collateral in lending agreements. The upcoming move takes this further by allowing clients to use the actual cryptocurrencies instead of ETF shares.
This shift will enable institutions holding large crypto reserves to access liquidity more easily without having to sell their assets. In turn, it will offer greater flexibility to investors seeking short-term funding options.
Notable Shift in Leadership Stance
Importantly, this development marks a symbolic shift for both the bank and its CEO, Jamie Dimon. Initially, he was a fierce critic of Bitcoin, labeling it worse than tulip bulbs. Nevertheless, Dimon has since tempered his perspective.
Although he continues to express skepticism about cryptocurrencies, Dimon recently stated that he will “defend your right to buy Bitcoin.”
Under his leadership, JPMorgan has quietly broadened its crypto services, from trading support to financing solutions tailored to digital asset markets.
Rising Institutional Interest Across Wall Street
JPMorgan is not alone in its pivot toward crypto integration. Other major financial players such as Fidelity, Morgan Stanley, BNY Mellon, and State Street have all expanded their crypto custody, trading, and product offerings in recent months.
These moves signal a pronounced trend among traditional institutions toward integrating digital assets into conventional finance. This evolution is driven by clients’ growing demand for diversified and sophisticated investment instruments.
Regulation Clears the Path Forward
Evolving regulatory frameworks have helped reduce uncertainty around crypto operations. In the United States, ongoing discussions about a crypto market structure bill are shaping up to create a clearer legal environment for banks.
Similar progress abroad has also lowered compliance barriers, enabling large financial institutions to experiment safely with blockchain-based lending and asset management services.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
