① JPMorgan Chase The plan is to allow institutional clients to use Bitcoin and Ethereum as loan collateral by the end of the year, launching globally and relying on third-party custodians to hold the collateral tokens; ② Recently, JPMorgan CEO Jamie Dimon has softened his stance, no longer regarding cryptocurrencies as fringe speculative assets, but rather as traditional assets for loan collateral.
Latest news indicates that global banks JPMorgan Chase plans to allow institutional clients to use their Bitcoin and Ethereum holdings as collateral for loans by the end of this year.
Sources familiar with the matter revealed that JPMorgan Chase 's new plan will be rolled out globally, relying on third-party custodians to hold the pledged tokens.
This move expands upon JPMorgan Chase's previous acceptance of cryptocurrency-related ETFs as collateral, marking a new phase in the integration of Wall Street and the crypto space.
This expansion demonstrates that cryptocurrencies are rapidly being integrated into the core operations of the global financial system. This year, Bitcoin's strong rebound and the Trump administration's easing of regulatory barriers have allowed major banks to begin more deeply integrating digital assets into their lending systems.
For JPMorgan Chase, this is both a symbolic shift and a substantial action: the bank’s CEO, Jamie Dimon, who once denounced Bitcoin as a “hyped scam” and a “pet stone,” no longer considers cryptocurrency a fringe speculative asset.
Instead, it will be used as collateral for loans, just like traditional assets such as stocks, bonds, and gold.
While Dimon remains skeptical, his stance has softened recently. "I think we shouldn't smoke, but I defend your right to smoke," he said at the JPMorgan Chase investor conference in May. "I defend your right to buy Bitcoin, so feel free to do so."
JPMorgan Chase is not the only Wall Street institution deepening its involvement in crypto assets. The Trump administration's pro-crypto policies and subsequent deregulation have significantly increased the risk tolerance of established financial institutions.
For example, Morgan Stanley The company plans to allow users on its retail trading platform, E*Trade, to access mainstream cryptocurrencies in the first half of next year. Other players include State Street. Group, Bank of New York Mellon And Fidelity They also provide services such as encrypted hosting.
Recent regulatory changes have also affected companies like BlackRock. Such institutions are able to accept Bitcoin from investors and exchange it for ETF shares that track the token.
Sources familiar with the matter said that JPMorgan Chase began exploring the possibility of using Bitcoin as collateral for loans as early as 2022, but the project was once shelved. With market expansion and regulatory easing, demand for crypto services from Wall Street clients has increased significantly.
Currently, the EU, Singapore, the UAE, and other regions have implemented relevant regulatory frameworks, while the US Congress is also reviewing legislation concerning the structure of the crypto market. Despite a recent deep market correction, Bitcoin still hit an all-time high of $126,000 earlier this month.
(Article source: CLS)
