by Enoch Mwathwa
In a landmark shift for traditional finance, JPMorgan has announced plans to let its institutional and high-net-worth clients use Bitcoin and Ethereum as collateral for loans. The move signals the growing integration of digital assets into mainstream banking and highlights Wall Street’s evolving stance on crypto under a more supportive U.S. regulatory climate.
JPMorgan Allows Bitcoin and Ethereum as Loan Collateral
According to a Bloomberg report, JPMorgan will begin accepting Bitcoin (BTC) and Ethereum (ETH) as collateral for loans by the end of the year. The program, limited to institutional and wealthy clients, marks the first time one of the world’s largest banks is directly leveraging crypto in its lending operations. This decision comes as global investors increasingly demand exposure to BTC and ETH amid a surge in adoption and a pro-crypto shift from the Trump administration.
The initiative aligns with JPMorgan’s earlier move to offer loans backed by crypto exchange-traded funds (ETFs), including BlackRock’s Bitcoin ETF. The bank has also started factoring clients’ crypto holdings into their wealth assessments, recognizing them as part of their total liquid assets. Still, the plan remains subject to final adjustments as regulators continue to shape crypto-lending frameworks.
Interestingly, JPMorgan’s decision comes even as CEO Jamie Dimon maintains a cautious stance on Bitcoin. Dimon has repeatedly criticized BTC for its association with illicit activity but acknowledged the growing market interest. His firm’s participation underscores a pragmatic approach, acknowledging that digital assets are now too significant to ignore.
Wall Street Accelerates Crypto Integration
The move comes amid a broader wave of crypto adoption across Wall Street. Morgan Stanley recently partnered with ZeroHash to enable crypto trading for E-Trade clients by early 2026. Meanwhile, Goldman Sachs and BlackRock have expanded their digital asset divisions, capitalizing on rising demand for regulated crypto exposure.
Under the Trump administration, momentum around pro-crypto legislation continues to build. The proposed Market Structure Act (CLARITY Act) and GENIUS Act aim to establish clear frameworks for stablecoins and digital asset trading. Coinbase CEO Brian Armstrong expects these bills to pass by year-end, paving the way for stronger institutional participation.
Earlier this month, JPMorgan analysts projected Bitcoin could surge to $165,000, citing a valuation gap between BTC and gold. With institutional involvement growing, Bitcoin and Ethereum may soon become staples in corporate finance strategies, cementing crypto’s role in global markets.
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