JPMorgan Reportedly Plans to Accept Bitcoin and Ether as Loan Collateral

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JPMorgan Chase is preparing to allow institutional clients to use bitcoin and ether holdings as collateral for loans by the end of the year, according to a report from Bloomberg.

The move would extend the bank's existing practice of accepting crypto-linked exchange-traded funds (ETFs) as collateral for lending, marking another step in its gradual engagement with digital assets. Under the reported plan, the tokens would be held by a third-party custodian to help manage counterparty exposure and operational risk.

The initiative is expected to apply globally and cover both credit lines and structured financing products, Bloomberg said.

The development highlights a notable shift in the stance of JPMorgan and its CEO, Jamie Dimon, who had long been critical of cryptocurrencies. In 2023, Dimon told the U.S. Senate Banking Committee, "I've always been deeply opposed to crypto, bitcoin, etc. The only true use case for it is criminals, drug traffickers... money laundering, tax avoidance."

However, his tone has softened in recent years. By May, Dimon told investors he would "defend your right to buy bitcoin," comparing it to defending a person's right to smoke, even if he personally disapproves.

JPMorgan has since taken further steps to integrate crypto-related services, including enabling customers to connect their Chase accounts to Coinbase wallets. If confirmed, the latest plan would signal another stage in Wall Street's evolving relationship with digital assets.