JPMorgan to Let Institutional Clients Pledge Bitcoin and Ether for Loans
JPMorgan Chase will allow institutional clients to use their bitcoin (BTC $111,605.32) and ether (ETH $3,938.43) holdings as collateral for loans before the end of 2025, according to Bloomberg.
The pledged tokens will be safeguarded by a third-party custodian, building on JPMorgan’s earlier move to accept crypto-linked ETFs as loan collateral.
This development highlights the growing integration of digital assets into traditional lending operations on Wall Street. With Bitcoin reaching record highs this year and regulatory clarity improving, major banks are shifting from cautious observation to actively incorporating crypto into their financial services.
Other leading institutions, including Morgan Stanley, State Street, and Fidelity, are also expanding their crypto offerings, providing retail access and custody solutions, the report noted.
