JPMorgan to Let Institutional Clients Use Bitcoin as Loan Collateral
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Key Facts
- JPMorgan will allow institutional clients to use Bitcoin as collateral for loans by late 2025.
- The program will operate globally using a third-party custodian to hold digital assets.
- Move signals a major step toward institutional adoption of Bitcoin in traditional finance.
JPMorgan Chase & Co. is preparing to integrate Bitcoin into its lending operations, allowing institutional clients to post the cryptocurrency as collateral for loans by the end of next year. The plan marks one of the most significant signs yet that major banks are embracing digital assets within conventional financial systems.
The initiative expands on JPMorgan’s earlier acceptance of crypto-linked ETFs as collateral and follows increased demand from corporate and institutional investors seeking blockchain-based financial services. A third-party custodian will manage the pledged Bitcoin to ensure security and regulatory compliance.
While CEO Jamie Dimon has long criticized Bitcoin, he has recently softened his tone, acknowledging its legitimacy as a tradable asset. The move brings JPMorgan in line with peers like BNY Mellon, Fidelity, and Morgan Stanley, who have expanded digital asset offerings amid clearer regulations worldwide.
