JPMorgan is reportedly preparing to allow its institutional clients to use Bitcoin (BTC) and Ethereum (ETH) holdings as collateral for loans later this year, marking a significant step toward integrating digital assets into traditional finance.
According to Bloomberg, the program will expand on the bank’s prior initiative to accept crypto-linked ETFs as loan collateral. Sources indicate the service will be offered globally, with third-party custodians managing the pledged tokens. Rising demand from institutional clients has driven the move, and while JPMorgan first explored lending against Bitcoin in 2022, earlier plans were shelved due to limited market support.
Allowing BTC and ETH as collateral could unlock additional liquidity for crypto holders, enabling them to borrow against their assets while maintaining exposure to potential price appreciation. This may increase demand for both cryptocurrencies, particularly among long-term investors seeking flexible financing without triggering taxable events.
JPMorgan joins other financial institutions experimenting with crypto-backed lending. Last month, Luzerner Kantonalbank became the first universal Swiss bank to accept Bitcoin and Ethereum as collateral for Lombard loans, followed by Swiss banks Sygnum and Swissquote offering similar facilities for crypto assets and ETFs.
JPMorgan’s evolving stance on crypto
Historically, JPMorgan CEO Jamie Dimon has been skeptical of cryptocurrency, at times calling Bitcoin a “hyped-up fraud” or a “pet rock.” However, his views have softened in recent years. In May 2025, he confirmed that institutional clients could purchase Bitcoin through the bank, though JPMorgan would not provide custody services. Dimon has defended clients’ rights to buy crypto while personally advising caution.
Over the past year, JPMorgan has also pursued stablecoin developments, filing a trademark for “JPMD” and exploring a potential joint stablecoin venture with other banks. In July 2025, JPMorgan and Coinbase announced a phased integration to allow crypto purchases, payments, and rewards directly through JPMorgan’s consumer banking ecosystem, including credit card access.
The move to accept Bitcoin and Ethereum as collateral reflects JPMorgan’s broader strategy to meet institutional demand for digital assets while maintaining a cautious but growing engagement with the crypto sector.
