JPMorgan Chase has revealed plans to allow institutional clients to use Bitcoin and Ethereum as collateral for loans.
According to Bloomberg, this marks a shift in how Wall Street banks integrate digital assets into their core lending operations. The collateral programme is set to roll out by the end of this year, letting clients pledge Bitcoin and Ethereum for secured loans, with a third-party custodian safeguarding the pledged tokens to ensure risk compliance.
Expanding loan collateral programme
The initiative expands on the bank’s recent initiative to accept crypto-linked ETFs as collateral, reflecting how traditional banks are strengthening their exposure to digital assets due to friendly regulations and rising institutional demand. JPMorgan declined to offer more details on the announcement.
Unlike their former stance on cryptocurrency, which labelled Bitcoin as a fraud, the bank’s representatives changed their view, saying they now defend customers’ right to buy Bitcoin. For JPMorgan, the new framework marks both a cultural and structural shift, as it recognises cryptocurrencies as eligible for collateral, treating Bitcoin and Ethereum the same as traditional assets such as stocks, bonds, and gold.
Alongside JPMorgan Chase, Morgan Stanley, State Street Corp., and Bank of New York Mellon Corp. are expanding into crypto services. The Trump administration’s friendly crypto stance and regulatory rollbacks supported banks in increasing digital asset exposure. Morgan Stanley is preparing to let users on its E*Trade platform access popular cryptocurrencies in early 2026, while BlackRock Inc. and Fidelity Investments began accepting Bitcoin as part of ETF collateral programmes.
JPMorgan Chase’s plans began back in July 2025, when the bank proposed the policy shift. Its growing interest in crypto aligns with its broader investments in blockchain and digital finance. In 2019, the bank developed JPM Coin, one of the first blockchain-based digital coins backed by a major financial institution.
