Bitcoin Magazine
JPMorgan will accept Bitcoin as collateral for the loan by the end of the year
JPMorgan Chase plans to allow institutional clients to use Bitcoin (BTC) and Ethereum (ETH) as collateral for loans by the end of 2025, according to a report. Bloomberg a report.
The new program, which is expected to be rolled out globally, will rely on a third party to protect pledged assets. The bank already allows cryptocurrency-linked exchange-traded funds (ETFs) as collateral, but this expansion will enable customers to borrow against their direct cryptocurrency holdings.
This shift could make it easier for institutions to access liquidity without selling long-term digital asset positions — a use case that has gained traction among hedge funds and family offices.
This development represents broader acceptance of digital assets across the financial sector. Other major banks, including Morgan Stanley, BNY Mellon, State Street and Fidelity, are expanding their cryptocurrency custody and trading services amid increasing regulatory clarity in the US and abroad.
JPMorgan first began exploring lending against Bitcoin in 2022, but the project was delayed, according to Business Insider. Bloomberg.
Jamie Dimon’s Changing Tone on Cryptocurrencies
JPMorgan CEO Jamie Dimon has long been one of the most vocal cryptocurrency skeptics, previously calling Bitcoin a “scam” and a “pet rock.” In 2023, he said he was “strongly opposed” to bitcoin and claimed it was primarily used for illicit activity.
However, his tone has softened recently. “I don’t think we should smoke, but I defend your right to smoke,” Damon said earlier this year. “I defend your right to buy Bitcoin, go for it.”
Despite Dimon’s reservations, JPMorgan has steadily increased its exposure to cryptocurrencies. The bank launched the JP Morgan Deposit Token (JPMD) — a blockchain-based alternative to stablecoins — and expanded its Kinexys blockchain network, which now processes more than $2 billion in daily transactions across carbon markets, supply chain finance, and cross-border payments.
Bitcoin and Ethereum prices rise
Following the news, Bitcoin rose over the past 24 hours to trade above $111,000, while Ethereum gained 2% to hover just below $4,000, according to data from Bitcoin Magazine Pro.
Last July, JPMorganChase and Coinbase announced a strategic partnership to make bitcoin and cryptocurrencies more accessible to their customers.
The deal included a direct bank-to-wallet connection, the ability to redeem Chase Ultimate Rewards points for cryptocurrencies, and credit card funding for Coinbase accounts. Both the bank-to-wallet and rewards features are scheduled to launch in 2026.
The post JPMorgan Will Accept Bitcoin as Loan Collateral by End of Year first appeared on Bitcoin Magazine and was written by Micah Zimmerman.
The post JPMorgan to Accept Bitcoin as Loan Collateral by Year-End first appeared on Investorempires.com.
