JPMorgan allows crypto as loan collateral

JPMorgan now lets select institutional clients use Bitcoin and Ethereum as collateral for loans, marking a major step in integrating crypto with traditional finance. The program is currently limited in scope.

JPMorgan Chase has launched a new program enabling select institutional clients to use Bitcoin and Ethereum as collateral for loans. This move, reported by CNBC and the Financial Times, marks a significant step in bridging cryptocurrencies with traditional finance. Currently, the program is limited to the bank’s trading business and specific clients, with pledged digital assets held by a third-party custodian. Previously, JPMorgan accepted crypto-related ETFs as collateral, but this initiative extends the policy to direct holdings of BTC and ETH. Clients can now access liquidity without selling their digital assets, maintaining market exposure and freeing up capital for other operations. While the rollout is cautious and not yet available bank-wide, it signals growing recognition of cryptocurrencies’ value in mainstream banking.