Investment banking giant JPMorgan Chase is reportedly planning to let clients use Bitcoin and Ether as collateral for loans, signaling Wall Street’s continued move toward embracing digital assets.
The new initiative would allow JPMorgan’s global clients to borrow against their Bitcoin (BTC) and Ether (ETH) holdings, according to a Bloomberg report published Friday, citing people familiar with the matter.
The offering would store clients’ Bitcoin and Ether holdings through a third-party custodian, according to people who spoke to the news outlet.
If confirmed, the development could make the two leading cryptocurrencies more attractive for institutional investors, akin to the historic approval of the first US spot Bitcoin exchange-traded fund (ETF) in January 2024.
A spokesperson for JPMorgan declined to comment.
The report follows months of speculation that JPMorgan could soon accept Bitcoin and Ether ETFs as collateral.
JPMorgan Continues Crypto Push
JPMorgan has been considering cryptocurrency-collateralized loans since at least July, when the first reports of this matter emerged.
However, the Financial Times previously reported that adopting Bitcoin and Ether as collateral assets may not occur until 2026.
The investment bank has also expressed interest in stablecoins during an earnings call on July 15, when CEO Jamie Dimon said they plan to be involved in stablecoins to better “understand” this emerging asset class.
JPMorgan was among the first US banks to venture into crypto. In 2020, it launched JPM Coin, a dollar-pegged stablecoin. In 2024, the bank reported holding shares of different spot Bitcoin ETFs.
The early integration came despite JPMorgan’s CEO previously expressing criticism of digital assets.
In 2018, Dimon said he had no interest in cryptocurrencies. In 2022, he called digital assets “decentralized Ponzi schemes,” but commented positively on blockchain and smart contract technology.