JPMorgan to Let Institutions Pledge Bitcoin and Ether as Loan Collateral
JPMorgan Chase will allow institutional clients to use their bitcoin (BTC $111,605.32) and ether (ETH $3,938.43) holdings as collateral for loans before the end of 2025, according to Bloomberg.
The tokens pledged under the program will be safeguarded by a third-party custodian, extending JPMorgan’s prior practice of accepting crypto-linked ETFs as collateral.
This move marks another step in Wall Street’s growing integration of digital assets into traditional lending. With Bitcoin reaching new highs this year and regulatory frameworks becoming clearer, major banks are shifting from skepticism to actively incorporating crypto into their financial services.
Other institutions, including Morgan Stanley, State Street, and Fidelity, are also broadening their crypto offerings by launching retail access and custody solutions, the report said.
