- JPMorgan will let institutional clients use Bitcoin and Ethereum as loan collateral by late 2025.
- The program will use a third-party custodian to secure pledged assets, boosting trust and institutional adoption.
- Bitcoin’s surge to $126,038 in 2025 strengthened its case as a viable asset within mainstream finance.
JPMorgan has made a major policy reversal by allowing clients to use Bitcoin as collateral for institutional loans. The move comes despite CEO Jamie Dimon’s long-standing criticism of cryptocurrencies, including his 2023 remark that if he “was the government, [he’d] close it down.” This announcement shows how major U.S. financial institutions are increasingly integrating digital assets into their traditional lending frameworks as Bitcoin and Ethereum continue to gain strength.
JPMorgan Expands Crypto-Collateral Program
According to Balchunas, JPMorgan plans to let institutional clients use both Bitcoin and Ethereum holdings as loan collateral by the end of 2025. The decision builds on the bank’s earlier move to accept crypto-based exchange-traded funds (ETFs) for similar purposes.
People familiar with the matter revealed that the global program will depend on a third-party custodian to manage and safeguard pledged digital assets, ensuring higher security and trust for participants.
This marks a sharp contrast from Dimon’s earlier stance against cryptocurrencies, where he described Bitcoin as useful mainly for “criminals, drug traffickers, and tax avoiders.” Yet, JPMorgan’s latest decision underscores growing demand among institutional clients seeking diversified collateral options in credit markets.
Strengthening Crypto’s Role In Institutional Finance
The inclusion of Bitcoin and Ethereum in JPMorgan’s collateral framework demonstrates the growing alignment between traditional finance and crypto markets. Notably, this follows an active year for digital assets, with Bitcoin’s performance drawing attention from global lenders. As banks increasingly explore blockchain-backed lending models, the focus has shifted from speculation to practical use within mainstream finance.
Industry analysts noted that integrating cryptocurrencies into lending systems can potentially enhance liquidity access for institutions holding large digital reserves. However, JPMorgan has yet to clarify whether the collateral program will extend to retail clients once it launches.
Bitcoin’s 2025 Rally Boosts Market Confidence
Bitcoin’s strong performance this year has reinforced its reputation as a maturing asset. The leading crypto surged to $126,038 in 2025 after dropping as low as $74,752 earlier in the year. At press time, Bitcoin traded around $110,595, up 0.86% over the past 24 hours, while Ethereum rose 1.87% to $3,924.This JPMorgan move comes as both assets maintain steady upward trends, reflecting wider market confidence. As Wall Street and crypto markets continue to converge, the boundaries between digital and traditional finance appear increasingly narrow.
