JPMorgan too Allow Bitcoin and Ethereum as Loan Collateral in Landmark Move
NEW YORK – JPMorgan Chase & co. (NYSE:JPM) announced it will begin accepting Bitcoin (BTC) and Ethereum (ETH) from institutional clients as collateral for loans, a significant development signaling growing acceptance of digital assets within traditional finance. The initiative,reported by Bloomberg,is slated for rollout by the end of 2025.
The move expands JPMorgan’s existing collateral acceptance policies, which previously included cryptocurrency-linked Exchange Traded Funds (ETFs). Under the new program, institutional customers will be able to pledge their Bitcoin and Ethereum holdings to secure loans. A third-party custodian will be utilized to safeguard the pledged crypto assets and ensure regulatory compliance.
This decision represents a notable shift in outlook for JPMorgan CEO Jamie Dimon, who has previously expressed skepticism towards Bitcoin, once calling it a “hyped-up fraud” and comparing it to a “pet rock.” More recently, however, Dimon stated at an investor conference that he “defends your right to buy Bitcoin, go at it,” while still maintaining reservations about its long-term value.
By accepting Bitcoin and Ethereum as collateral, JPMorgan is effectively treating these cryptocurrencies similarly to traditional assets like stocks, bonds, and gold bullion.
JPMorgan’s move aligns wiht a broader trend within the financial industry.Fintech companies like SoFi are actively integrating crypto-assets into their offerings, while platforms such as Robinhood Markets and Kraken are focused on bridging the gap between traditional finance (TradFi) and digital assets through unified trading platforms.
Industry observers anticipate continued convergence between TradFi and the digital asset space as regulatory frameworks evolve and institutional demand for cryptocurrencies increases.
