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JPMorgan Reportedly Preparing to Accept Bitcoin, Ether as Loan Collateral by Year-End

The reported framework would use third-party custodians to fit crypto into bank credit workflows.

Overview

  • Bloomberg reports that JPMorgan aims to let institutional clients pledge BTC and ETH for loans by the end of 2025, and the bank declined to comment.
  • The program is described as global in scope and would keep pledged tokens with approved third‑party custodians rather than on the bank’s balance sheet.
  • The initiative builds on JPMorgan’s earlier move to accept crypto-linked ETFs, such as BlackRock’s iShares Bitcoin Trust, as loan collateral.
  • The reported plan revives a 2022 effort to lend against Bitcoin that was shelved, reflecting clearer rules and rising client demand across major markets.
  • The shift tracks broader Wall Street adoption, with firms like Morgan Stanley, BNY Mellon, State Street, and Fidelity expanding crypto custody, trading, and tokenization services.