JPMorgan to Accept Bitcoin, Ethereum as Loan Collateral

• JPMorgan’s crypto collateral plan signals mainstream banking’s growing trust in digital assets.
• Regulatory easing under the Trump administration accelerates Wall Street’s crypto market integration.
• Bitcoin’s record surge boosts institutional confidence and drives broader blockchain adoption globally.

By the end of the year, JPMorgan Chase & Co. is going to allow institutional customers to pledge their holdings of Bitcoin and Ether as security on loans to them. The project represents a significant step into the further development of the crypto activity of the bank and is a sign of the increase in the digitization of the traditional finance industry. The program will be worldwide and will be based on a third-party custodian to protect pledged tokens as Bloomberg stated. The shift underscores the growing trust of large financial institutions as policies governing cryptocurrencies keep relaxing all over the globe.

JPMorgan Expands Institutional Crypto Lending

The new policy is based on the previous move made by JPMorgan to receive crypto-linked exchange-traded funds (ETFs) as collateral. According to people who are aware of the issue, the bank will now afford the same treatment to direct Bitcoin and Ether holdings. A spokesperson of JPMorgan refused to comment on the development. The program’s launch highlights how major lenders are entering the digital asset space, treating it similarly to traditional securities like stocks, bonds, and gold.

The Chief Executive Officer of JPMorgan, Jamie Dimon, has been vocal on Bitcoin regarding it being a hyped-up fraud. Nevertheless, in the recent years his position has become less radical. During an investor conference held in May, Dimon indicated that he continued to be uncertain about the value of the asset, but clients ought to have the liberty of investing in it. I protect your right to purchase Bitcoin, got it, he said.

Wall Street Banks Deepen Crypto Integration Amid Regulatory Shift

The move arrives as the U.S. regulators loosen their rules on digital assets during the Trump government, which provides a more welcoming environment to banks entering the crypto service industry. There are other large institutions, including Morgan Stanley, State Street Corp., and Fidelity, which have also added to their crypto offerings, such as custody and access to retail and institutional clients.

By mid-2026, Morgan Stanley is predicted to allow the users of E*Trade platforms to trade major cryptocurrencies, according to the Bloomberg report. In the meantime, asset managers such as BlackRock have already started permitting customers to replace Bitcoin with ETF shares under newly changed regulations. The growth would signify the process of traditional finance evolving to digital assets as the number of clients demanding and regulatory certainty in markets such as the European Union, Singapore, and the United Arab Emirates expands.

The recent surge of Bitcoin to an all-time high of $126,251 in the beginning of this month has only added to the institutional confidence. Despite market volatility, Wall Street’s largest bank now views crypto as a legitimate part of global finance, reviving a 2022 initiative it once abandoned.