worldcoinindex.com
JPMorgan Chase & Co. is preparing to allow its institutional clients to post Bitcoin and Ethereum as collateral for loans—a move that could redefine how digital assets interact with traditional finance. The initiative, slated for rollout by the end of 2025, represents one of the most tangible bridges between crypto and Wall Street’s lending ecosystem.
According to Bloomberg reports ahead of Friday’s market open, the program will rely on a third-party custodian to securely hold pledged tokens, enabling JPMorgan to extend credit without taking direct custody of volatile digital assets. JPMorgan stock edged 0.18% higher in pre-market trading at $294.93 following the report.
The framework would permit clients to back structured loans or credit lines with approved crypto assets, broadening JPMorgan’s previous collateral policy from crypto ETFs to the underlying assets themselves. Once operational, Bitcoin and Ethereum would sit alongside Treasuries, equities, and gold within the bank’s collateral management system—though their inherent volatility means new risk protocols will be essential.
Industry observers describe the move as both a milestone and a paradox. While Bitcoin was designed to eliminate counterparty risk, its increasing integration into traditional financial systems reintroduces it in a regulated form. “The irony is clear,” one analyst noted. “Bitcoin was created to bypass banks, but now banks are finding ways to borrow against it.”
Experts warn that incorporating crypto collateral will force banks to rethink credit exposure and settlement models. “Digital assets trade 24/7, but the banking system doesn’t,” said one risk consultant. “This means credit desks will have to adapt to real-time valuation, exchange liquidity, and custodial solvency metrics.”
Credit committees are expected to develop new safeguards—dynamic margin requirements, oracle-based pricing feeds, and custodial risk insurance—to address crypto’s volatility.
JPMorgan’s strategy aligns with a broader shift among U.S. banks embracing blockchain infrastructure and tokenized assets. In July, BNY Mellon and Goldman Sachs introduced a tokenized money market fund for institutional clients, while Morgan Stanley announced plans to allow Bitcoin, Ethereum, and Solana trading on its ETrade platform by mid-2026.
With the GENIUS Act reshaping federal guidance around digital assets, major financial institutions are accelerating their crypto integrations. For JPMorgan, the move marks not just a policy shift but a recognition that the line between traditional finance and decentralized assets is rapidly disappearing.