Investment banking giant JPMorgan Chase is reportedly planning to permit its customers to make use of Bitcoin and Ether as collateral for loans, signaling Wall Street's ongoing trend toward accepting digital assets.
According to a Bloomberg report published on Friday, citing people aware of the matter, the initiative would allow JPMorgan's global clients to borrow against their holdings of Bitcoin (BTC) and Ether (ETH).
The offering would store customers' Bitcoin and Ether holdings through a third-party custodian, in keeping with individuals who spoke to the news outlet.
If confirmed, this development could make the 2 leading cryptocurrencies more attractive to institutional investors, just like the historic approval of the primary US spot Bitcoin exchange-traded fund (ETF) in January 2024.
A JPMorgan spokesman declined to comment.
The report follows months of speculation that JPMorgan could soon accept Bitcoin and Ether ETFs as collateral.
JPMorgan continues crypto push
JPMorgan has been considering cryptocurrency-backed loans since not less than July, when the primary reports on the subject emerged.
Still, the Financial Times previously reported that the adoption of Bitcoin and Ether as collateral may not occur until 2026.
The investment bank also expressed interest in stablecoins during an earnings call on July 15, when CEO Jamie Dimon said they plan to take part in stablecoins to higher “understand” this emerging asset class.
JPMorgan was among the many first US banks to enterprise into cryptocurrency. In 2020, JPM Coin, a dollar-pegged stablecoin, was launched. In 2024, the bank reported holding shares of varied spot Bitcoin ETFs.
The early integration got here despite JPMorgan's CEO previously criticizing digital assets.
In 2018, Dimon said he had little interest in cryptocurrencies. In 2022, he referred to digital assets as “decentralized pyramid schemes” but was positive about blockchain and smart contract technology.
