JPMorgan Chase accelerates its embrace of cryptocurrency, allowing Bitcoin and Ethereum as collateral

JPMorgan Chase is significantly deepening its layout in the cryptocurrency field, planning to allow institutional clients to use their actual holdings of Bitcoin and Ethereum as loan collateral for the first time.

According to media reports on the 24th citing informed sources, JPMorgan plans to launch this new business globally by the end of this year. The scheme will rely on third-party custodians to hold the cryptocurrency tokens used as collateral, which is a further extension of its earlier business that began accepting cryptocurrency-related ETFs as collateral.

This action highlights that cryptocurrencies are being rapidly integrated into the core channels of the financial system. With the rebound in Bitcoin prices this year and the Trump administration easing regulatory barriers, major banks are beginning to introduce digital assets more deeply into the lending system, opening up new sources of liquidity for investors.

For JPMorgan, this is both a functional business expansion and a significant symbolic shift. The bank's CEO Jamie Dimon once dismissed Bitcoin as "overhyped fraud" or "pet rocks," but now the bank is preparing to view it as qualified collateral alongside stocks, bonds, and gold. A spokesperson for JPMorgan declined to comment on this.

JPMorgan Accelerates Embrace of Cryptocurrency, Wall Street Giants Join In

JPMorgan's shift in attitude towards directly using cryptocurrencies as collateral has undergone a process from skepticism to gradual acceptance. The bank's CEO Jamie Dimon's stance has softened in recent years, although he still remains skeptical. Dimon stated at JPMorgan's investor conference in May this year:

"I don't think we should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin, go ahead."

According to the aforementioned informed sources, JPMorgan began exploring the business of providing loans backed by Bitcoin as early as 2022, but the project was later shelved. Subsequently, with the growth of the cryptocurrency market and gradual regulatory easing, the demand from clients across Wall Street surged, prompting the bank to restart and advance this plan.

Under the Trump administration's friendly stance towards cryptocurrencies and the subsequent regulatory loosening, traditional financial giants on Wall Street have increasingly accepted the risks associated with digital assets and are accelerating their entry into the market.

For example, Morgan Stanley plans to allow its E*Trade retail platform customers to access mainstream cryptocurrencies starting in the first half of next year. Other participants include State Street Corp., Bank of New York Mellon Corp., and Fidelity, which have begun offering cryptocurrency custody services. Additionally, a recent regulatory change also allows companies like BlackRock to accept investors' Bitcoin and convert it into ETF shares tracking that token.

Currently, regions such as the European Union, Singapore, and the United Arab Emirates have introduced regulatory rules for this field, while the U.S. Congress is also reviewing bills aimed at regulating the structure of the cryptocurrency market.

Market dynamics have also played a catalytic role; despite a recent deep market correction, Bitcoin reached a historic high of $126,251 earlier this month. These factors together have prompted mainstream financial institutions to no longer view cryptocurrencies as marginalized speculative tools, but rather as an asset class that can be integrated into their core business