|
Getting your Trinity Audio player ready...
|
- JPMorgan to allow Bitcoin and Ether as loan collateral by end of 2025.
- Marks a major shift in Jamie Dimon’s cautious stance on crypto.
- Reflects Wall Street’s growing adoption of digital assets amid clearer regulations.
JPMorgan Chase & Co. is preparing to let institutional clients use Bitcoin (BTC) and Ether (ETH) as collateral for loans by the end of 2025. The move marks a major shift for the largest U.S. bank, signaling that digital assets are moving deeper into mainstream finance. Under the program, investors will be able to borrow against their cryptocurrency holdings just as they would with traditional assets like stocks, bonds, or gold.
According to Bloomberg, the offering will be available globally and rely on a third-party custodian to securely hold clients’ digital assets. This builds on JPMorgan’s earlier decision to accept crypto-linked ETFs—such as BlackRock’s iShares Bitcoin Trust—as loan collateral, indicating growing institutional comfort with the asset class.
Jamie Dimon’s Subtle Shift on Bitcoin
For years, JPMorgan CEO Jamie Dimon was one of Bitcoin’s loudest critics, famously calling it a “fraud.” But in recent remarks, his tone has noticeably softened. “I don’t think we should smoke, but I defend your right to smoke,” Dimon said earlier this year, comparing personal choice to Bitcoin investing. While he remains cautious about crypto’s long-term role, JPMorgan’s decision reflects both client demand and market maturity.
Wall Street’s Broader Crypto Embrace
JPMorgan isn’t alone. Morgan Stanley is preparing to allow crypto trading on its E*Trade platform in 2026, while Fidelity, State Street, and BNY Mellon are expanding crypto custody and settlement services. The trend suggests that major financial institutions are aligning themselves with global regulatory clarity—especially in regions like the EU, Singapore, and the UAE.
A Turning Point for Institutional Crypto Adoption
After shelving its Bitcoin collateral plans in 2022 due to regulatory uncertainty, JPMorgan is reviving the concept in a more mature landscape. With new compliance frameworks in place, the move positions the bank to serve a growing class of institutional investors seeking liquidity without selling their digital assets.
JPMorgan’s crypto-collateral program signals a broader shift in how traditional finance views digital assets. Once dismissed as speculative, Bitcoin and Ether are now being treated like legitimate collateral—proof that crypto is no longer on the fringes of finance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: JPMorgan Blocks Gemini After Winklevoss Criticism
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
