JPMorgan has started accepting Bitcoin as collateral for loans.

JPMorgan's Significant Bitcoin Move

JPMorgan Chase is preparing to offer its institutional clients the ability to use digital assets such as Bitcoin (BTC) and Ethereum (ETH) as collateral for loans. This strategic step indicates a shift in the perspective of one of Wall Street's largest banks towards digital assets. According to information from Bloomberg, the program is expected to be rolled out by the end of the year, allowing clients to pledge these cryptocurrencies for secured loans.

Details of the Loan Collateral Application

With this new application, JPMorgan aims to ensure the security of the pledged tokens by collaborating with a third-party custody provider. This will enhance the security of clients' digital assets.

Strategy for Collateralizing Crypto Assets

JPMorgan has expanded its practice of accepting ETFs related to digital assets as loan collateral. This situation demonstrates how traditional banks are increasing their exposure to digital assets in response to regulatory easing and growing institutional demand. Although a JPMorgan spokesperson declined to comment on the matter, this move clearly strengthens the bank's position in the digital finance realm.

Jamie Dimon's Changing Attitude

CEO Jamie Dimon, who once referred to Bitcoin as “a fraud that has been exaggerated,” is now seen looking at the issue from a different perspective. In May, during an investor conference, Dimon stated, “I defend your right to own Bitcoin, go ahead,” which is regarded as a sign of the leader's softened stance.

Banks' Orientation Towards Digital Assets

JPMorgan's acceptance of Bitcoin and Ethereum as collateral puts them on par with traditional assets such as stocks, bonds, and gold. At this point, JPMorgan is taking steps to expand crypto services alongside other major financial institutions like Morgan Stanley, State Street, and Bank of New York Mellon.

The crypto-friendly policies of the Trump administration and recent regulatory easing have aided large banks in increasing their exposure to digital assets. For example, Morgan Stanley plans to provide access to leading cryptocurrencies via the E*Trade platform starting in early 2026. Additionally, BlackRock and Fidelity Investments have already begun accepting Bitcoin as part of their ETF collateral programs.