Other major banks are expanding crypto custody and lending services.
JPMorgan Chase & Co. is reportedly preparing to let institutional clients use BTC and ETH as collateral for loans by the end of the year, as per a Bloomberg report.
The move marks one of the most significant steps yet by a major US bank toward integrating digital assets into traditional finance, signalling how fast cryptocurrencies are moving from the periphery to the core of global banking.
For years, JPMorgan CEO Jamie Dimon was one of the fiercest critics of Bitcoin, calling it a “decentralised Ponzi scheme” and claiming that only criminals used it.
Dimon’s comments often shaped how Wall Street viewed the cryptocurrency market.
But Dimon’s tone has softened in recent years, especially since Donald Trump’s 2024 election win, which brought regulatory changes that have made it easier for banks to engage with digital assets.
Now, Dimon’s JPMorgan is taking a major step that would have seemed unthinkable just a few years ago.
The bank’s new program will reportedly allow institutional clients to pledge their Bitcoin and Ethereum holdings as collateral for loans.
The assets will be held by a third-party custodian, ensuring compliance with existing financial and regulatory standards.
Speculation about JPMorgan’s crypto-collateral plans first emerged earlier this year when the Financial Times reported that the bank was exploring such a move, potentially by 2026.
At the time, scepticism ran high. Dimon’s long record of dismissing Bitcoin, combined with banks’ cautious approach to regulatory uncertainty, made the plan seem remote.
However, the landscape has changed rapidly in 2025. With Bitcoin trading above $111,000 and Ethereum nearing $4,000, the digital asset market has reached unprecedented maturity and capitalisation.
Bitcoin’s market cap has surged to over $2.2 trillion, while Ethereum’s market cap has climbed to nearly $478 billion.
The rise in these asset prices, combined with increased institutional demand, has made cryptocurrencies more appealing as loan collateral.
JPMorgan’s initiative will expand on its earlier decision to accept crypto-linked exchange-traded funds (ETFs) as collateral.
JPMorgan’s shift mirrors a broader transformation across the financial sector.
Morgan Stanley plans to open cryptocurrency access to retail investors through its E*Trade platform in the first half of next year.
State Street, BNY Mellon, and Fidelity are all expanding their digital asset custody services, while BlackRock recently introduced new mechanisms allowing investors to convert Bitcoin directly into ETF holdings.
Even long-time sceptics like Standard Chartered have revised their stance, recognising the growing importance of cryptocurrencies in global finance.
These moves indicate that digital assets are no longer being viewed as speculative outliers but as legitimate components of diversified financial systems.
