JPMorgan to Accept Bitcoin and Ethereum as Loan Collateral — A Landmark Shift in Traditional Finance

JPMorgan Chase, one of Wall Street’s most powerful institutions, is reportedly preparing to let its institutional clients use Bitcoin (BTC) and Ethereum (ETH) as collateral for loans before the end of the year — a move that could mark one of the most significant bridges yet between traditional banking and crypto finance.

According to Bloomberg, the initiative will expand JPMorgan’s existing framework that already permits crypto-linked ETFs as loan collateral. The new plan would allow clients worldwide to leverage direct holdings of BTC and ETH, with third-party custodians managing token security and settlement.

Sources close to the matter say the push stems from growing institutional appetite for digital assets and the bank’s recognition of crypto’s maturing market infrastructure. JPMorgan had reportedly tested similar ideas in 2022 but shelved them amid regulatory uncertainty and weak demand.

If approved, the policy would put Bitcoin and Ethereum alongside traditional assets such as stocks, bonds, and gold as acceptable loan collateral—an acknowledgment that crypto is evolving from speculative asset to financial instrument.

Though JPMorgan declined to comment, industry insiders view this as a watershed moment for institutional crypto adoption and a sign that TradFi’s walls are finally coming down.