JPMorgan will allow institutional clients to use Bitcoin and Ethereum as collateral for loans by the end of 2025, signaling deeper Wall Street engagement with digital assets.
Key Takeaways
- JPMorgan will permit Bitcoin and Ether to be pledged as collateral for institutional loans globally by the end of the year.
- Assets will be held by a third-party custodian to manage operational risks and counterparty exposure.
- This expansion builds on JPMorgan’s earlier acceptance of crypto-linked ETFs as collateral.
- The move reflects broader mainstream adoption of digital assets across major financial institutions.
What Happened?
JPMorgan Chase, one of the world’s largest financial institutions, is preparing to let institutional clients use their Bitcoin and Ethereum holdings as loan collateral. The program is expected to roll out globally by the end of 2025, according to a Bloomberg report citing sources familiar with the matter.
This shift follows the bank’s recent decision to accept crypto-linked ETFs as collateral and aligns with a wider trend among Wall Street giants integrating digital assets into core financial services.
JPMorgan to allow its institutional clients to use bitcoin and ether as collateral for loans as crypto continues to get absorbed into Wall Street’s plumbing. Nice scoop from @emilyjnicolle and yet another example of Life Moves Pretty Fast pic.twitter.com/ej68sOHm9J
— Eric Balchunas (@EricBalchunas) October 24, 2025
JPMorgan Deepens Crypto Integration
JPMorgan’s upcoming collateral program marks one of the most direct steps yet by a major U.S. bank to integrate cryptocurrencies into traditional financial infrastructure. The pledged digital assets will be safeguarded by a third-party custodian, not by JPMorgan itself. This structure helps reduce counterparty risk and operational complexity for the bank.
Key aspects of the program include:
- Global availability for institutional clients.
- Assets eligible include Bitcoin (BTC) and Ethereum (ETH).
- Custody will be managed externally to protect both clients and JPMorgan.
- Applies to credit lines and structured financing products.
Details such as valuation methods, margin requirements, and eligibility criteria are still under development.
Building on Previous Steps
The move expands on JPMorgan’s previous step in June when it began accepting shares of Bitcoin and Ether exchange-traded products (ETPs) as collateral for securities financing and derivatives transactions. With this new policy, the underlying tokens themselves can now be pledged, giving clients more flexibility and potentially improving liquidity for crypto-heavy portfolios.
This signals a meaningful evolution in JPMorgan’s crypto strategy. Once openly critical of cryptocurrencies, CEO Jamie Dimon has recently moderated his stance. While he still expresses caution, Dimon stated that he would “defend your right to buy bitcoin,” acknowledging growing institutional interest.
Wall Street Embraces Digital Assets
JPMorgan is not alone in expanding crypto services. Major peers including Morgan Stanley, State Street, Fidelity, and BNY Mellon have all introduced or scaled crypto offerings in recent years. These range from custody services and trading desks to retail investment products.
The evolving regulatory landscape has also contributed to this shift. Ongoing developments in U.S. crypto legislation and clearer global compliance standards are helping financial firms feel more secure in offering digital asset-related services.
CoinLaw’s Takeaway
I think this is a major milestone. In my experience covering crypto and finance, few things move the needle like when legacy financial institutions start backing digital assets with real credit. Allowing Bitcoin and Ethereum to be pledged as collateral is not just about flexibility for clients, it’s a clear statement that crypto is maturing as an asset class.
This change could pave the way for more structured financial products around digital assets and give institutions an incentive to hold crypto long term without sacrificing liquidity. I found it especially notable that JPMorgan is doing this even after years of internal skepticism. It shows how quickly the space is evolving and that the lines between traditional finance and crypto are getting blurrier by the day.
