Bloomberg: JPMorgan to Allow Institutional Clients to Use Bitcoin and Ethereum as Collateral

BlockBeats News, October 24th, according to Bloomberg, JPMorgan Chase & Co. plans to allow institutional clients to use their held Bitcoin and Ethereum as loan collateral by the end of this year, marking Wall Street's accelerated integration into the cryptocurrency ecosystem.

According to sources familiar with the matter, this global service will rely on a third-party custodian to oversee the collateralized tokens. This plan is a further extension of JPMorgan Chase's previous acceptance of cryptocurrency-linked ETFs as collateral. A JPMorgan Chase spokesperson declined to comment on this.

This business expansion indicates that cryptocurrency is rapidly permeating the core architecture of the financial system. With Bitcoin's strong rebound this year and the Trump administration removing regulatory barriers, major banks are beginning to more deeply incorporate digital assets into the credit system.

For JPMorgan Chase, this is both a symbolic shift and a functional breakthrough: Jamie Dimon, JPMorgan Chase's CEO who once dismissed Bitcoin as a "fraud" and a "pet rock," no longer sees cryptocurrency as a fringe asset. Instead, they will be treated as eligible loan collateral just like traditional assets such as stocks, bonds, and gold. While Dimon's stance has softened recently, he remains cautious. At an investor conference in May, he stated, "I support your right to buy Bitcoin just like I support your right to smoke cigarettes, but I don't want to be anywhere near it."