JPMorgan Expands Institutional Lending to Include Crypto Assets in 2025
JPMorgan Chase & Co. is preparing to let some of its largest clients post Bitcoin and Ethereum as collateral for loans, in a step that could reshape how Wall Street treats digital assets. The plan, detailed in a report released before Friday’s opening bell, is expected to go live before the end of 2025.
A third-party custodian will hold any pledged tokens, keeping them outside the bank’s direct control. That safeguard mirrors JPMorgan’s policy for other digital-asset products and helps limit regulatory exposure. Shares of the bank edged 0.18 percent higher in pre-market trading to $294.93, a modest uptick that reflected early investor reaction.
The proposal extends earlier policy of accepting crypto-linked exchange-traded funds as collateral. Allowing borrowers to use the coins themselves moves digital assets closer to the status of more conventional instruments such as Treasuries or gold, though price swings remain far greater.
Bitcoin’s record surge this year, combined with a lighter regulatory climate, has encouraged U.S. lenders to reassess their approach to digital assets. For banks once skeptical of crypto’s place in finance, integration now appears inevitable rather than optional.
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