Key Takeaways
- JPMorgan intends to allow institutional clients to use Bitcoin and Ethereum as collateral for loans by the end of the year.
- This move signifies growing institutional demand for cryptocurrency exposure and its integration into traditional finance.
- The bank will utilize third-party custodians for the pledged digital assets.
- This initiative follows similar steps taken by Swiss banks to embrace crypto-based lending.
JPMorgan is reportedly planning to enable its institutional clients to leverage Bitcoin and Ethereum as collateral for loans within the current year, marking a significant stride in bridging traditional finance with digital assets.
According to a Bloomberg report, this new program will extend JPMorgan’s existing services, which already accept crypto-linked ETFs as collateral. The initiative is expected to be rolled out globally, with the bank relying on third-party entities for the custody of pledged tokens.
Institutional Demand Drives Crypto Integration
The decision to offer crypto collateral services stems from a notable increase in demand from institutional clients seeking exposure to digital assets. Sources suggest that JPMorgan began exploring this possibility as early as 2022, but the market was not sufficiently developed at the time.
A spokesperson for JPMorgan declined to comment on the specifics of accepting Bitcoin (BTC) and Ethereum (ETH) as collateral. If implemented, this would position BTC and ETH alongside conventional assets like stocks, bonds, and gold, allowing clients to secure loans against their digital holdings.
💡 This development could substantially boost liquidity in the crypto market, enabling holders to access financing without liquidating their assets, thereby preserving potential capital gains and avoiding immediate taxable events.
The acceptance of cryptocurrencies as collateral by traditional financial institutions is not unprecedented. Recently, Luzerner Kantonalbank became the first universal Swiss bank to offer its clients the ability to use Bitcoin and Ethereum for Lombard loans. Other Swiss financial institutions, including Sygnum Bank and Swissquote, have also integrated major crypto assets and crypto-based ETFs into their credit offerings.
JPMorgan’s Evolving Stance on Crypto
Historically, JPMorgan CEO Jamie Dimon has expressed skepticism towards cryptocurrencies, notably Bitcoin, which he once characterized as a hyped-up fraud. However, his perspective appears to have softened in recent times.
In May 2025, Dimon announced that JPMorgan would permit clients to purchase Bitcoin, although he later clarified that the bank would not provide custody services for these assets. He affirmed clients’ right to buy Bitcoin, even while personally advising against it.
Over the past year, JPMorgan has also signaled its intent to advance stablecoin development, aiming to meet the institutional demand for digital payment solutions. While acknowledging their utility, Dimon has raised questions about the necessity of stablecoins for transactions compared to traditional payment methods.
Earlier in June, JPMorgan filed a trademark application for JPMD, fueling speculation about a potential stablecoin launch. Reports also indicate that the bank has engaged in discussions with other financial institutions regarding a possible joint stablecoin venture.
In July 2025, JPMorgan and Coinbase announced a phased integration plan designed to embed crypto access, payments, and rewards directly into JPMorgan’s consumer banking services. This collaboration includes the possibility for customers to purchase cryptocurrencies on Coinbase using credit cards.
Final Thoughts
JPMorgan’s exploration of accepting Bitcoin and Ethereum as loan collateral signals a significant shift in the traditional finance industry’s engagement with digital assets. This move reflects growing institutional confidence and demand for cryptocurrencies, potentially unlocking greater liquidity and accessibility for crypto holders.