JPMorgan Chase & Co. is preparing to let institutional clients use Bitcoin (BTC) and Ether (ETH) as collateral for loans by the end of the year, marking a major step in Wall Street’s growing adoption of digital assets.
The new program will operate globally and rely on a third-party custodian to safeguard the pledged crypto assets, according to people familiar with the matter.
It builds on JPMorgan’s earlier initiative of accepting crypto-linked exchange-traded funds (ETFs) as loan collateral. The bank itself declined to comment on the move.
A milestone for Wall Street’s crypto acceptance
This development highlights how digital assets are becoming more intertwined with the global financial system. With Bitcoin hitting an all-time high of $126,251 earlier this month and the Trump administration easing regulatory barriers, major U.S. banks are now integrating crypto more directly into their core operations.
For JPMorgan, this marks a symbolic shift from skepticism to participation. CEO Jamie Dimon, once known for calling Bitcoin a “hyped-up fraud” and a “pet rock,” has softened his tone. Speaking at the company’s investor conference in May, Dimon remarked:
“I don’t think we should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin, go at it.”
The broader trend of crypto integration
JPMorgan’s move follows similar steps from other financial giants. Morgan Stanley plans to let customers on its E*Trade platform access leading cryptocurrencies in 2026. Meanwhile, State Street, BNY Mellon, and Fidelity have expanded into crypto custody and related services.
Recent regulatory adjustments have also enabled firms like BlackRock to accept Bitcoin from investors and exchange it for ETF shares tracking the asset, further cementing Bitcoin’s role in mainstream finance.
JPMorgan initially explored crypto-backed loans in 2022 but later shelved the effort due to regulatory uncertainty. Now, with client demand surging and global regulations maturing — particularly in the European Union, Singapore, and the UAE — the project is back on track.
Bitcoin’s new all-time highs and the steady inflow into Bitcoin ETFs have only accelerated Wall Street’s shift toward crypto-backed financial products.
