JPMorgan to Accept Bitcoin and Ethereum as Loan Collateral

JPMorgan Chase, one of the biggest banks in the world, has announced that it will let clients use Bitcoin (BTC) and Ethereum (ETH) as collateral for loans. 

This service will be available only to institutional investors and high-net-worth clients. This decision, reported on October 24, shows that the traditional bank is becoming more open to digital currencies. 

JPMorgan Plans Bitcoin and Ethereum-Backed Loans

JPMorgan’s plan comes as other major financial companies, such as BlackRock, Morgan Stanley, and Goldman Sachs increased their involvement in the crypto market. Many Wall Street clients are now looking for ways to gain exposure to Bitcoin and Ethereum, and banks are responding to that demand.

The bank aims to begin offering Bitcoin and Ethereum-backed loans by the end of the year. However, insiders say that the plan could still change depending on market conditions and internal reviews.

Earlier this year, JPMorgan said it was planning to offer loans backed by crypto exchange-traded funds (ETFs). It hopes to start with BlackRock’s Bitcoin ETF.  The financial institution has also started considering clients’ crypto holdings when calculating their total net worth and available assets.

JPMorgan Embraces Crypto Despite CEO’s Past Doubts

Allowing people to use Bitcoin and Ethereum as collateral is a big step that shows major banks are starting to take digital currencies more seriously.

This move is important because JPMorgan’s CEO, Jamie Dimon, has been known for his doubts about cryptocurrencies. He has often said that crypto is used for illegal activities. However, under his leadership, the bank is still finding safe and profitable ways to work with digital assets.

In 2025, JPMorgan is changing by getting more involved in blockchain projects. The bank is also partnering with companies like Coinbase and other major players in the crypto industry.

Meanwhile, JPMorgan is not the only major bank doing this. Morgan Stanley has also teamed up with ZeroHash to let E-Trade clients trade popular digital currencies, with plans to launch the service by early 2026.

JPMorgan’s Crypto Move Aligns with Rising U.S. Support for Digital Assets

JPMorgan’s announcement comes during a period of increasing government support for crypto innovation. The Trump administration has introduced some new laws, including the Market Structure Act (CLARITY Act) and the GENIUS Act for stablecoins. These laws are meant to make crypto rules clearer and help the industry grow.

Coinbase CEO Brian Armstrong recently said that the long-awaited crypto market structure bill could pass by the end of the year, thanks to support from both major political parties.

Bitcoin is currently trading above $111,300, showing a 1.68% increase in the past 24 hours, according to CoinMarketCap data. Earlier this month, JPMorgan analysts predicted that Bitcoin’s price could rise to $165,000, arguing that it remains undervalued compared to gold. Experts said that as gold prices rise, Bitcoin’s fair value looks even higher.