JPMorgan accelerates its embrace of cryptocurrencies, allowing Bitcoin and Ethereum as collateral.

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JPMorgan is significantly deepening its presence in the cryptocurrency sector, planning to allow institutional clients to use their actual holdings of Bitcoin and Ethereum as collateral for loans for the first time.

According to reports on the 24th citing sources familiar with the matter, JPMorgan plans to launch this new business globally before the end of the year. The scheme will rely on third-party custodians to safeguard the crypto tokens used as collateral, representing a further extension of its earlier move to accept crypto-related ETFs as collateral.

This move highlights how cryptocurrencies are rapidly being integrated into the core channels of the financial system. With Bitcoin prices rebounding this year and the Trump administration relaxing regulatory barriers, major banks have begun bringing digital assets deeper into the lending system, opening up new sources of liquidity for investors.

For JPMorgan, this is both a functional business expansion and a significant symbolic shift. The bank’s CEO, Jamie Dimon, once dismissed Bitcoin as an “overhyped fraud” or a “pet rock,” but now the bank is preparing to treat it as eligible collateral akin to stocks, bonds, and gold. A JPMorgan spokesperson declined to comment on this.

JPMorgan Accelerates Its Embrace of Cryptocurrency as Wall Street Giants Join the Game

JPMorgan’s shift in attitude toward directly using cryptocurrencies as collateral has gone through a process from skepticism to gradual adoption. CEO Jamie Dimon’s stance has softened in recent years, though he himself remains doubtful. At the JPMorgan investor conference in May this year, Dimon stated:

“I don’t think we should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin, go ahead.”

According to the aforementioned sources, JPMorgan began exploring Bitcoin-backed loans as early as 2022, but the project was later shelved. Since then, with the growth of the crypto market and gradual regulatory easing, client demand across Wall Street has surged, prompting the bank to restart and advance the plan.

With the Trump administration’s friendly stance toward cryptocurrency and subsequent regulatory relaxation, Wall Street’s traditional financial giants have become increasingly accepting of digital asset risks and are accelerating their entry into the market.

For example, Morgan Stanley plans to allow clients on its E*Trade retail platform to access mainstream cryptocurrencies starting from the first half of next year. Other participants include State Street Corp., Bank of New York Mellon Corp., and Fidelity, all of which have begun offering crypto custody services. Additionally, a recent regulatory change allows companies like BlackRock to accept investors’ Bitcoin and convert it into ETF shares tracking the token.

Currently, regions including the EU, Singapore, and the UAE have issued regulatory rules for this sector, while the US Congress is reviewing bills aimed at regulating the structure of the crypto market.

Market dynamics have also played a catalytic role—in spite of a recent deep correction, Bitcoin reached a historic high of $126,251 earlier this month. These factors have collectively prompted mainstream financial institutions to no longer view cryptocurrencies as marginalized speculative tools, but rather as an asset class that can be integrated into their core business.

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