This could make Bitcoin and Ether more attractive to institutional investors seeking to maximize the utility of their assets.
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Investment banking giant JPMorgan Chase is reportedly planning to let clients use Bitcoin and Ether as collateral for loans, signaling Wall Street’s continued move toward embracing digital assets.
The initiative would allow JPMorgan’s global clients to borrow against their Bitcoin () and Ether () holdings, to a Bloomberg report published Friday, citing people familiar with the matter.
The offering would store clients’ Bitcoin and Ether holdings through a third-party custodian, according to people who spoke to the news outlet.
If confirmed, the development could make the two leading cryptocurrencies more attractive for institutional investors, akin to the historic approval of the first US spot Bitcoin in January 2024.
A spokesperson for JPMorgan declined to comment.
The report that JPMorgan could soon accept Bitcoin and Ether ETFs as collateral.
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considering cryptocurrency-collateralized loans since at least July, when the first reports on this matter emerged.
Still, the Financial Times previously that adopting Bitcoin and Ether as collateral assets may not occur until 2026.
The investment bank also expressed during an earnings call on July 15, when CEO Jamie Dimon said they planned to be involved in stablecoins to better “understand” this emerging asset class.
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JPMorgan was among the first US banks to venture into crypto. In 2020, it , a dollar-pegged stablecoin. In 2024, the bank reported .
The early integration came despite JPMorgan’s CEO previously expressing criticism of digital assets.
In 2018, Dimon said he cryptocurrencies. In 2022, he called digital assets “decentralized Ponzi schemes,” but and smart contract technology.
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