JPMorgan To Let Bitcoin And Ether Collateralize Loans – Yes, You Heard That Right

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Well, folks, here we are. In the latest twist in the ever-astonishing world of finance, JPMorgan, the heavyweight champ of American banks, is finally ready to let Bitcoin (BTC) and Ether (ETH) waltz in as collateral for loans. Oh, and this little piece of news is coming before the year’s up. Can you believe it? 🎉

JPMorgan To Allow Bitcoin, Ether As Collateral

According to Bloomberg’s scoop last Friday, JPMorgan Chase & Co. is gearing up to let its institutional clients use those lovable, volatile creatures-Bitcoin and Ether-as collateral for loans. All of this is supposed to happen by the end of 2025. Mark your calendars, folks; the crypto revolution might actually be here to stay.

This follows JPMorgan’s earlier genius move to allow crypto-based Exchange-Traded Funds (ETFs) as collateral. Yep, back in June, the bank decided, “Why not let everyone use spot crypto-linked ETFs like BlackRock’s IBIT?” to pledge their investments. Before that, clients could only use crypto ETFs on a case-by-case basis. Talk about playing hard to get.

Sources close to the matter (and probably a few inside folks sipping coffee at JPMorgan) confirmed that the new program will be rolled out globally. That’s right-clients will be able to pledge their precious Bitcoin and Ether holdings to secure loans. A third-party custodian will be standing guard over all those digital assets like a night watchman with a fancy hat. 🕴️

Now, here’s the kicker-JPMorgan’s interest in lending against Bitcoin started back in 2022. But guess what? The whole idea was thrown into the back of the closet because of pesky regulatory challenges. 🙄

Fast forward to today, and the US crypto landscape has transformed. Institutional adoption is skyrocketing, and the government is out there trying to make America the “Crypto Capital of the World.” 🏆

In July, reports emerged that JPMorgan might be kicking the tires on crypto-collateralized loans again. Apparently, their earlier cold shoulder to digital assets was turning some clients away, and the bank wasn’t about to lose out on all that crypto cash. But let’s be real-nobody’s surprised that the big banks are slowly creeping into crypto land, even if they’ve been acting like the reluctant kid at the swimming pool for years.

JPMorgan’s Crypto Shift

Let’s take a moment to acknowledge JPMorgan’s CEO, Jamie Dimon. The man has been nothing short of a crypto skeptic, calling Bitcoin a “Ponzi scheme” and dismissing it as “useless as a pet rock” in January. Ouch. But then in May, Dimon did a little backpedaling and said, “Okay, fine. Clients can buy Bitcoin, but we won’t hold it for them.” So, there’s that.

But wait-there’s more! Since that momentous decision, JPMorgan has been all in on stablecoins and crypto trading. In July, the bank hinted it would launch a limited stablecoin for its clients, because apparently, sitting on the sidelines while other banks dive into crypto just wasn’t an option. 📈

Last week, JPMorgan also announced it would allow clients to trade crypto assets directly through the bank. That’s right-get ready for a new era of finance where your old school banker might start advising you on how to hodl and trade your Bitcoin.

Meanwhile, US Bancorp has dusted off its crypto custody services after three years in the shadows, all thanks to the removal of Biden-era regulations. Looks like crypto custody is becoming the hot new thing, and JPMorgan’s Scott Lucas said, “Eh, maybe not just yet.” Apparently, custody isn’t quite on the near-term horizon. It’s more like a distant cousin at a family reunion: you know they’re coming, but they’re not quite here.

Lucas also made it clear that risk rules and regulatory changes will determine how far JPMorgan stretches its crypto wings. Stay tuned. 📺

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2025-10-25 11:19