JPMorgan To Allow Institutional Clients To Use Bitcoin as Loan Collateral

JPMorgan Chase & Co. plans to enable institutional clients to use Bitcoin as collateral for loans by the end of 2025, according to a Bloomberg report citing people familiar with the matter.

The program, which will be offered globally, is expected to use a third-party custodian to hold pledged digital assets. 

It builds on JPMorgan’s previous decision to accept crypto-linked exchange-traded funds (ETFs) as collateral. A company spokesperson declined to comment on the plans.

The initiative reflects an expansion of traditional financial institutions’ engagement with digital assets. 

As Bitcoin and cryptocurrency markets have grown and regulatory frameworks evolved, several major banks have introduced services involving these assets.

For JPMorgan, the move marks an operational change in how digital assets are treated within its lending framework. 

The bank—whose chief executive Jamie Dimon has previously been critical of Bitcoin, calling it a “hyped-up fraud” and a “pet rock”—appears set to treat Bitcoin and cryptocurrencies in a similar manner to traditional collateral such as equities, bonds, and commodities.

Dimon, while maintaining a cautious view of Bitcoin, has indicated a more measured position in recent remarks. 

“I don’t think we should smoke, but I defend your right to smoke,” Dimon said at JPMorgan’s investor conference in May. “I defend your right to buy Bitcoin, go at it.”

JPMorgan initially explored Bitcoin-backed lending in 2022, though the project was paused. 

Interest in such services has since increased amid rising institutional demand and greater regulatory clarity in several jurisdictions. 

Rules governing digital assets are already in effect in regions including the European Union, Singapore, and the United Arab Emirates, while U.S. lawmakers continue to debate legislation to establish a market structure for digital assets.

Other major financial institutions are also expanding their involvement with digital assets. 

Morgan Stanley plans to allow E*Trade customers to access Bitcoin and other digital assets in early 2026, while State Street, BNY Mellon, and Fidelity have advanced their crypto custody and trading offerings. 

Recent regulatory changes have additionally allowed firms such as BlackRock to accept Bitcoin from investors in exchange for ETF shares tracking the asset.

Separately, JPMorgan has expanded its blockchain initiatives through the launch of its J.P. Morgan Deposit Token (JPMD) and the growth of its Kinexys network, which now processes over $2 billion in daily transactions across multiple financial applications.