JPMorgan Plans to Accept Bitcoin, Ether as Loan Collateral for Institutional Clients by Year End
JPMorgan Chase & Co. plans to let institutional clients
use Bitcoin and Ether holdings as collateral for loans by the end of the year.
The initiative will be available globally and will use a third-party custodian
to secure the digital assets, Bloomberg reported. The bank has previously
accepted crypto-linked ETFs as collateral.
Banks Expand Crypto Services Amid Rising Adoption
The move reflects growing integration of digital assets into
mainstream finance. Bitcoin’s price gains and regulatory adjustments under the
current U.S. administration have encouraged banks to expand crypto services.
JPMorgan’s approach treats crypto like traditional assets such as stocks,
bonds, and gold.
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NEW: JPMORGAN PLANS TO ALLOW INSTITUTIONAL CLIENTS TO USE BITCOIN AND ETHER AS COLLATERAL FOR LOANS BY THE END OF THE YEAR – PER BLOOMBERG SOURCES pic.twitter.com/oIQfdjhAzx
— DEGEN NEWS (@DegenerateNews) October 24, 2025
Other firms are also broadening crypto offerings. Morgan
Stanley plans to let E*Trade customers access cryptocurrencies next year. State
Street, BNY Mellon, and Fidelity provide custody services. Recent rules allow
firms like BlackRock to swap client Bitcoin for ETF holdings tracking the
token.
Crypto-Backed Lending Returns Amid Client Demand
JPMorgan first explored crypto-backed lending in 2022 but
paused the project. Rising client demand and regulatory clarity have prompted
its return. Markets have fluctuated, with Bitcoin reaching $126,251 earlier
this month.
TRUMP: 🇺🇸 “The Golden Age of America is upon us, with today’s signing.”President Trumps signs the Genius Act signaling the first of Stablecoin legislation. pic.twitter.com/JD2TtV0p9b
— CoinDesk (@CoinDesk) July 18, 2025
Banks Integrate Digital Assets into Services
Recent regulatory
changes in the United States have encouraged other financial institutions
to develop digital asset offerings. Some banks plan to provide cryptocurrency
trading, wallet solutions, and investment strategies for clients.
Executives
have noted that blockchain-based infrastructure is established and clients
should be able to access digital and traditional assets within the same
platform.
This article was written by Tareq Sikder at www.financemagnates.com.
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