JPMorgan will accept Bitcoin and Ethereum as collateral.

America's banking giant JPMorgan has taken a significant step towards the cryptocurrency world by offering its institutional clients the option to use Bitcoin and Ethereum assets as collateral by the end of the year.

Additionally, JPMorgan is developing a new global program that will allow its institutional investors to utilize Bitcoin and Ethereum assets as collateral before the end of 2025. Under this program, the crypto assets shown as collateral will be secured by third-party custodians. Previously, JPMorgan only accepted spot Bitcoin and Ethereum ETFs as collateral, marking a significant step by now accepting the crypto assets themselves.

Bank officials state that this program will solely cover large institutional investors and will be conducted within the framework of risk management. JPMorgan’s expansion of its crypto collateral model indicates an increased cautious interest in this area. This move is also expected to provide further integration into the digital asset ecosystem with the emergence of crypto-collateralized financing products.

Many market experts point out that JPMorgan’s acceptance of Bitcoin and Ethereum directly as collateral demonstrates that the boundaries between traditional finance and crypto assets are becoming increasingly blurred. This development could offer more flexible liquidity management for large funds and digital asset managers. Therefore, it is crucial for investors to closely monitor this program.