JPMorgan Opens Door to Bitcoin and Ethereum Collateral for Institutional Clients

JPMorgan, an American multinational investment bank and financial services company, will allow its institutional clients to use Bitcoin (BTC) and Ethereum (ETH) as loan collateral by the end of 2025.

This move marks one of the most significant steps yet by a major traditional bank toward integrating digital assets into mainstream finance, reflecting growing confidence in cryptocurrencies as legitimate financial instruments.

JPMorgan Expands Into Crypto-Backed Loans 

Bloomberg revealed that the program will be offered globally and will rely on third-party custodians to securely hold the pledged crypto assets. Notably, in July, that such an initiative was under consideration.

At that time, sources suggested the bank might begin offering crypto-backed loans sometime next year. However, the latest update indicates that the launch could now happen by the end of this year.

The latest pivot builds on JPMorgan’s earlier step of accepting crypto-linked exchange-traded funds (ETFs) as collateral. The bank first began offering financing against BlackRock Inc.’s iShares Bitcoin Trust (IBIT), marking its initial step toward integrating digital assets into its lending operations.

This comes even as CEO Jamie Dimon’s personal views on crypto remain cautious. In 2023, Dimon described Bitcoin as a “hyped-up fraud” and even referred to it as a “pet rock.” That December, he doubled down on his criticism, saying he was “deeply opposed to crypto and Bitcoin.” 

“We are going to have some kind of digital currency at some point. I’m not against crypto. You know, Bitcoin itself has no intrinsic value. It’s used heavily by sex traffickers, money launderers, ransomware,” Dimon said in an interview in January 2025.

Nevertheless, the latest initiatives reflect that the bank is adopting a more pragmatic approach. In May, it began allowing clients to purchase Bitcoin. The bank also introduced its own alternative to a stablecoin — the J.P. Morgan Deposit Token (JPMD). This token operates on Base.

“JPMD represents the first product to be offered by J.P. Morgan on public blockchain infrastructure, and will provide institutional clients a digital money alternative to stablecoins,” the bank noted.

Furthermore, JPMorgan’s blockchain network, Kinexys, has experienced significant expansion, with its average daily transaction volume surpassing $2 billion. During Q3 2025, Kinexys broadened its presence across carbon markets, supply-chain finance, and cross-border payments. This highlighted the bank’s goal of making blockchain infrastructure a core element of institutional settlement.

JPMorgan is also among the 30 global banks participating in SWIFT’s initiative to create a shared digital ledger. It is designed to facilitate real-time, cross-border payments.