In a landmark move, JPMorgan Chase is preparing to permit institutional clients to use Bitcoin (BTC) and Ethereum (ETH) holdings as collateral for loans before the close of 2025.
Rather than relying on ETFs or other proxy instruments, clients will be able to pledge the actual crypto assets themselves. JPMorgan plans to safeguard these assets via an independent third-party custodian.
This initiative builds on the bank’s earlier decision to accept crypto-linked ETFs as loan collateral, marking a deepening of digital asset integration into its financing services.
Analysts view the step as a pivotal turning point: it signals that crypto is further shedding its status as niche speculation and is being folded into mainstream institutional finance.