JPMorgan Chase plans to let institutional clients use their Bitcoin and Ether holdings as collateral for loans by the end of this year, Bloomberg reports, citing people familiar with the matter. The program will be offered globally and will rely on a third-party custodian to hold the pledged tokens. It builds on JPMorgan’s earlier move to accept crypto-linked exchange-traded funds (ETFs) as collateral. A spokesperson for the bank declined to comment.
According to Bloomberg, the initiative highlights how quickly cryptocurrencies are being integrated into the traditional financial system. With Bitcoin prices climbing this year and the Trump administration easing certain regulatory hurdles, major banks are increasingly incorporating digital assets into lending and collateral frameworks.
Broader industry moves
Other large Wall Street institutions are also expanding their crypto offerings. Morgan Stanley plans to allow customers on its E*Trade platform to access popular cryptocurrencies next year, while State Street, BNY Mellon, and Fidelity are building out crypto custody services.
