- JPMorgan will allow clients to use Bitcoin (BTC) and Ethereum (ETH) as loan collateral.
- This move marks a major shift from Jamie Dimon’s earlier criticism of cryptocurrencies.
- Other large banks are also expanding custody and lending services for digital assets.
JPMorgan Chase & Co. is reportedly preparing to permit institutional clients to pledge BTC and ETH as collateral for loans by the end of the year, according to a Bloomberg report.
This step is one of the most significant moves by a major U.S. bank toward integrating digital assets with traditional finance, signaling how quickly cryptocurrencies are moving from the fringes into the core of global banking.
JPMorgan reconsiders cryptocurrencies
For years, JPMorgan’s CEO, Jamie Dimon, was one of Bitcoin’s most vocal critics, calling it a “decentralized Ponzi scheme” and asserting that criminals were the primary users.
Dimon’s comments often shaped Wall Street’s view of the cryptocurrency market.
However, Dimon’s tone has softened in recent years, particularly after the regulatory shifts that followed the 2024 U.S. election, which made it easier for banks to engage with digital assets.
Now JPMorgan is taking a step that would have seemed unthinkable a few years ago.
The bank’s new program reportedly will allow institutional clients to pledge their Bitcoin and Ethereum holdings as collateral for loans.
The underlying assets will be held by an external custodian to ensure compliance with established financial and regulatory standards.
From skepticism to action
Speculation about JPMorgan’s plans to accept crypto as collateral first surfaced earlier this year when the Financial Times reported the bank was exploring the idea, potentially rolling it out by 2026.
At the time, skepticism was high. Dimon’s long history of dismissing Bitcoin, combined with banks’ cautious stance amid regulatory uncertainty, made the plan seem distant.
But by 2025 the landscape had shifted quickly. With Bitcoin trading above $111,000 and Ethereum approaching $4,000, the digital asset market reached unprecedented maturity and market capitalization.
Bitcoin’s market cap rose above $2.2 trillion, while Ethereum’s market cap climbed toward $478 billion.
Rising prices, together with growing institutional demand, made cryptocurrencies more attractive as loan collateral.
JPMorgan’s initiative builds on its earlier decision to accept cryptocurrency-linked exchange-traded funds (ETFs) as collateral.
Other banks embrace digital assets
JPMorgan’s shift reflects a broader transformation across the financial sector.
Morgan Stanley plans to offer access to cryptocurrencies for retail investors through its E*TRADE platform in the first half of next year.
State Street, BNY Mellon and Fidelity are expanding their digital asset custody services, while BlackRock recently introduced mechanisms that let investors convert Bitcoin directly into ETF shares.
Even long-standing skeptics such as Standard Chartered have revised their positions, acknowledging the growing importance of cryptocurrencies in global finance.
These moves suggest digital assets are increasingly viewed not as fringe speculative bets but as legitimate components of diversified financial systems.