TradFi giant JPMorgan is reportedly planning to allow its institutional clients to use Bitcoin and Ethereum as loan collateral some time within this year.
- JPMorgan is set to allow institutional clients to use Bitcoin and Ethereum as collateral for loans, marking a major step toward integrating digital assets into traditional finance.
- The move reflects rising institutional demand for crypto exposure and follows similar initiatives by Swiss banks, signaling a growing global trend of mainstream banks embracing crypto-based lending.
According to a report by Bloomberg, JPMorgan will start allowing their institutional clients to use Bitcoin and Ether holdings as collateral for loans be the end of this year, in a landmark step that further integrates crypto assets into the traditional finance sector.
The program will build upon the bank’s earlier move to start accepting crypto-linked ETFs as collateral for loans. Inside sources have told Bloomberg that the program will be offered on a global scale and will rely on third-parties to provide custody for the pledged tokens.
Sources cite the rising demand for cryptocurrency support from institutional clients as the reason behind the company’s shift towards digital assets. People familiar with the matter claimed that the firm first began exploring the possibility of lending with Bitcoin back in 2022. However, the plan was ultimately shelved as there was not much support for the industry yet.
When asked about the firm’s plan to start accepting Bitcoin (BTC) and Ethereum (ETH) as collateral, a spokesperson from JPMorgan declined to comment on the matter. The move would put BTC and ETH on the same level as more conventional assets like stocks, bonds and gold as clients are able to pledge tokens for a loan.
The decision to start accepting Bitcoin and Ethereum as collateral could serve to unlock deeper liquidity into the crypto market for holders who prefer not to sell their assets. Investors will soon be able to borrow against their Bitcoin or Ether holdings while maintaining exposure to potential price appreciation.
This could lead to greater demand for both assets, especially among long-term holders seeking flexible financing options without triggering taxable events from selling their holdings.
Banks accepting crypto as collateral for loans is not a new concept. Last month, Luzerner Kantonalbank became the first universal Swiss bank to allow its clients to use Bitcoin and Ethereum as collateral for Lombard loans. Not only that, other Swiss banks like Sygnum Bank and Swissquote have also started accepting major crypto assets and crypto-based ETFs as collateral in credit lines.
JPMorgan going bullish on crypto
In the past, JPMorgan CEO Jamie Dimon has been skeptical of cryptocurrency, especially Bitcoin. He had initially considered the world’s largest cryptocurrency by market cap worthless, calling it a “hyped-up fraud” or a “pet rock.” Though recently, his views seem to have shifted.
In May 2025, Dimon said that he would allow the bank’s clients to purchase Bitcoin during a speech at the banking giant’s annual investor day. Although, he later clarified that while clients can buy BTC, the bank will not custody it. On his personal views about Bitcoin, Dimon said that he “defends” people’s right to buy Bitcoin, even though he himself believes they should not.
Within the past year, JPMorgan has declared that it would move forward with stablecoin developments as it attempt to keep up with institutional demand for digital payments. While he acknowledged their utility, Dimon questioned why people would want to make transactions using stablecoins instead of “just payment.”
Earlier in June, JPMorgan had filed a stablecoin-related trademark dubbed “JPMD” which sparked speculation that the bank is planning to launch its own stablecoin. Not only that, the bank has also reportedly been in private talks with other banks about the potential of launching a joint stablecoin venture.
In July 2025, JPMorgan and Coinbase announced a phased rollout to integrate crypto access, payments, and rewards directly into JPMorgan’s consumer banking ecosystem. The integration would extend to credit cards as well, as customers would be able to purchase crypto on Coinbase using credit cards.
