In a significant development for Wall Street’s crypto integration, JPMorgan, one of the largest financial institutions in the US, is set to allow Bitcoin (BTC) and Ether (ETH) as collateral before the end of the year.

JPMorgan To Allow Bitcoin, Ether As Collateral

On Friday, Bloomberg reported that JPMorgan Chase & Co. plans to let its institutional clients use the two largest cryptocurrencies, Bitcoin and Ether, as collateral for loans by the end of 2025.

This follows the bank’s move to allow crypto-based Exchange-Traded Funds (ETFs) as collateral. In June, the bank began allowing both institutional and retail clients globally to use spot crypto-linked ETFs, like BlackRock’s IBIT, to pledge the investment products. Previously, clients could only do it on a case-by-case basis.

According to people familiar with the matter, the new program will be offered globally, allowing JPMorgan’s clients to pledge their Bitcoin and Ether holdings as security for loans, expanding Wall Street’s crypto integration. The program is set to rely on a third-party custodian to safeguard the pledged assets.

Bloomberg sources affirmed that the largest US bank first began exploring the idea of lending against Bitcoin in 2022. However, the project was reportedly shelved due to regulatory challenges.

Since then, there have been significant developments in the US crypto landscape, including a massive surge in institutional adoption and the government’s regulatory shift to make America the “Crypto Capital of the World.”

In July, some reports suggested that the banking giant was once again exploring the idea of expanding its lending operations to include crypto-collateralized loans, as the bank’s ear

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Author: Rubmar Garcia