JPMorgan Allows Bitcoin, Ether as Institutional Loan Collateral
JPMorgan Chase plans to allow institutional clients to use Bitcoin and Ether as loan collateral by December 2025.
The bank aims to broaden its crypto services for global institutions, employing a third-party custodian for regulatory compliance.
Extends ETF Collateral Policy
JPMorgan already accepts crypto-linked ETFs as collateral since 2024.
This move incorporates raw Bitcoin and Ether into its lending framework.
The bank has been offering crypto services since 2020, indicating a cautious approach to digital assets.
Focus on Institutional Lending
The program is designed for large-scale clients such as hedge funds and asset managers, excluding retail investors to reduce regulatory risks.
This initiative enhances capital efficiency for institutions with significant crypto holdings, aligning with Wall Street’s expanding crypto integration.
Boost for Crypto Markets
Crypto lending reached $10 billion in Q3 2025, spurred by institutional demand.
JPMorgan's involvement may increase liquidity and further legitimize digital assets, contributing to mainstream financial adoption.
Custody risks remain a concern despite potential market benefits.
