JPMorgan will allow the use of Bitcoin and Ether as collateral for loans

• Bank adopts Bitcoin and Ether in new guarantee model
• Measure expands integration of cryptocurrencies into the financial system
• Institutions will be able to obtain liquidity without selling their assets

JPMorgan Chase plans to allow its institutional clients to use Bitcoin (BTC) and Ether (ETH) as collateral for loans by the end of 2025, according to information released by Bloomberg. The initiative marks a significant step forward in the incorporation of cryptocurrencies into traditional Wall Street lending operations, reinforcing the role of digital assets in the global financial market.

According to sources close to the bank, the global program will rely on an external custodian responsible for holding the cryptocurrencies pledged as collateral. This approach aims to ensure security and regulatory compliance, essential aspects for large-scale institutional acceptance of digital assets.

The decision follows a previous measure by the institution, which had already permitted the use of cryptocurrency-linked ETFs as collateral in credit transactions. This new phase broadens the scope, directly including the underlying digital assets—BTC and ETH—in the list of accepted collateral.

This change represents a strategic alternative for financial institutions and funds, which can now access liquidity without having to sell their long-term assets. The possibility of using cryptocurrencies as collateral tends to increase market liquidity and increase institutional confidence in the digital asset class.

The decision draws attention given the track record of JPMorgan CEO Jamie Dimon, who has been one of Bitcoin's harshest critics. In previous years, Dimon described the digital currency as "useless" and lacking intrinsic value. However, the bank's stance demonstrates an adaptation to growing customer demand and the maturing cryptocurrency market.

With JPMorgan among the world's largest financial institutions adopting BTC and ETH in its operations, the move could pave the way for other banks to follow suit, solidifying cryptocurrencies as legitimate instruments within traditional finance.