According to Bloomberg, JPMorgan Chase is preparing to roll out a program that will allow institutional clients to take loans secured by BTC and ETH. The bank aims to launch the service by the end of the year, further integrating digital assets into the traditional financial system.
Bloomberg’s sources say the program will be available to clients worldwide. A third-party custodian will hold the pledged tokens to safeguard the assets.
Institutional Shift Toward Digital Assets
The move reflects the growing presence of cryptocurrencies within Wall Street’s infrastructure. Bitcoin’s rise since the start of the year and the easing of regulatory restrictions under the Trump administration have encouraged major banks to engage more actively with digital assets.
For JPMorgan, the move is also symbolic. The bank’s CEO Jamie Dimon, who previously criticized Bitcoin, now allows its use alongside stocks, bonds, and gold as collateral. At a JPMorgan conference in May, Dimon noted that while he doesn’t personally support cryptocurrencies, he stands for clients’ freedom of choice.
“I don’t think people should smoke, but I defend your right to do it. Likewise, I defend your right to buy Bitcoin,” he said.
Other major players are also expanding their digital asset offerings. Morgan Stanley is preparing to launch access to popular tokens for users of its E*Trade platform in the first half of next year.
Regulatory changes have also enabled companies like BlackRock Inc. to accept Bitcoin from investors and exchange it for ETF shares tracking the token’s price.
JPMorgan first considered offering Bitcoin-backed loans in 2022, but the project was put on hold at the time. Now, as the market rebounds and regulations ease, demand for such services on Wall Street has grown significantly.
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