JPMorgan Chase, the world’s largest bank by market value, is reportedly preparing to let institutional clients pledge Bitcoin and Ethereum as collateral for loansc – a move that would mark one of the deepest integrations of digital assets into the traditional banking system to date.
For years, JPMorgan’s stance toward crypto was defined by skepticism, particularly from its CEO Jamie Dimon, who once dismissed Bitcoin as “a pet rock.” But under mounting client demand and shifting political sentiment in Washington, the bank now appears ready to embrace the sector it once kept at arm’s length.
According to sources close to the matter, the initiative is expected to roll out by the end of 2025 and will rely on third-party custodians to safeguard digital assets pledged as collateral. This will allow large investors and corporations to borrow against their crypto holdings without liquidating them – a capability long requested by institutional clients seeking liquidity while maintaining exposure to Bitcoin and Ethereum.
A New Layer in Wall Street’s Crypto Strategy
The plan extends JPMorgan’s earlier experiment of accepting crypto-linked ETFs as collateral and signals that digital assets are being gradually absorbed into the same risk and lending frameworks used for equities, bonds, and commodities.
The timing is notable: Bitcoin recently hit an all-time high above $126,000, while the Trump administration’s pro-crypto policies and ongoing deregulation have emboldened U.S. banks to move deeper into digital asset finance. What was once considered a volatile fringe market is now being redefined as a viable part of global capital structure.
Competitors Join the Race
JPMorgan isn’t alone. A wave of major financial institutions – including Morgan Stanley, BNY Mellon, State Street, and Fidelity – have all accelerated their digital asset initiatives this year. Morgan Stanley plans to open its E*Trade platform to crypto traders by mid-2026, while other firms have launched or expanded custody, staking, and tokenized asset services.
The shift has been made easier by a growing web of regulations across regions such as the European Union, Singapore, and the United Arab Emirates, each of which has implemented legal frameworks for digital asset markets. In the U.S., lawmakers are also nearing completion of a Crypto Market Structure Bill, which could clarify how firms manage and lend against these assets.
Symbolic and Structural Change
For JPMorgan, the decision represents more than a new revenue stream – it’s a symbolic acknowledgment that crypto has become too large and too integrated to ignore. Dimon, though still skeptical of Bitcoin’s intrinsic value, recently told investors that people should have “the freedom to buy it if they want,” adding that his bank will meet client demand responsibly.
The revival of JPMorgan’s crypto lending ambitions comes three years after an initial pilot was paused amid market turbulence and unclear regulatory guidance. Today, with rising institutional demand and global acceptance, the bank’s reentry marks a turning point for digital finance on Wall Street.
As one executive familiar with the rollout put it, “Crypto isn’t replacing the financial system – it’s becoming part of it.”
Source: Bloomberg
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