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JPMorgan to accept Bitcoin as loan collateral by year-end
JPMorgan Chase & Co. plans to allow institutional clients to use Bitcoin (BTC) and Ethereum (ETH) as collateral for loans by the end of 2025, Bloomberg reports.
The new program will be rolled out globally and will rely on third-party custodians to protect collateral assets. The bank already allows exchange-traded funds (ETFs) linked to cryptocurrencies as collateral, but the expansion will allow customers to borrow directly against their crypto holdings.
This change could make it easier for financial institutions to access liquidity without having to sell long-term digital asset positions, a use case that is gaining traction among hedge funds and family offices.
This development represents wider acceptance of digital assets across the financial sector. Other major banks, including Morgan Stanley, BNY Mellon, State Street and Fidelity, are expanding their crypto custody and trading services amid increased regulatory clarity in the U.S. and abroad.
According to Bloomberg, JPMorgan first started considering a Bitcoin loan in 2022, but the project was delayed.
Jamie Dimon’s change in tone on cryptocurrencies
JPMorgan CEO Jamie Dimon has long been one of the most vocal skeptics of cryptocurrencies, previously calling Bitcoin a “scam” and a “pet rock.” In 2023, he said he was “deeply opposed” to Bitcoin, claiming that Bitcoin is primarily used for illegal activities.
However, recently his tone has become softer. “I don’t think people should smoke, but I defend the right to smoke,” Dimon said earlier this year. “I defend your right to buy Bitcoin. Good luck.”
Despite Dimon’s reservations, JPMorgan has steadily increased its exposure to cryptocurrencies. The bank launched a blockchain-based alternative to stablecoins, the JP Morgan Deposit Token (JPMD), and expanded its Kinexys blockchain network, which now processes more than $2 billion in transactions daily in carbon markets, supply chain finance, and cross-border payments.
Bitcoin and Ethereum prices rise
Following the news, Bitcoin rose over the past 24 hours to over $111,000, while Ethereum rose 2% to remain just below $4,000, according to data from Bitcoin Magazine Pro.
Back in July, JPMorgan Chase and Coinbase announced a strategic partnership to give customers easier access to Bitcoin and cryptocurrencies.
The deal included direct bank and wallet connections, the ability to exchange Chase Ultimate Rewards points for cryptocurrency, and credit card funding to Coinbase accounts. Both the bank-to-wallet and rewards features were scheduled to launch in 2026.
JPMorgan to accept Bitcoin as loan collateral by year-end This article first appeared in Bitcoin Magazine and was written by Micah Zimmerman.
Source: https://bitcoinmagazine.com/business/jpmorgan-to-accept-btc-as-collateral
