"The new program, expected to roll out globally, will rely on a third-party custodian to safeguard pledged assets. The bank already allows crypto-linked exchange-traded funds (ETFs) as collateral, but this expansion would enable clients to borrow against their direct crypto holdings. The shift could make it easier for institutions to access liquidity without selling long-term digital asset positions - a use case that has gained traction among hedge funds and family offices."
"JPMorgan CEO Jamie Dimon has long been one of crypto's most vocal skeptics, previously calling Bitcoin a "fraud" and a "pet rock." In 2023, he said he was "deeply opposed" to Bitcoin and claimed it was used mainly for illicit activity. However, his tone has recently softened. "I don't think we should smoke, but I defend your right to smoke," Dimon said earlier this year."
JPMorgan Chase will permit institutional clients to post Bitcoin and Ethereum as collateral for loans by the end of 2025, with a global rollout planned. The program will rely on a third-party custodian to safeguard pledged digital assets. The bank already accepts crypto-linked ETFs as collateral; the expansion enables borrowing against direct crypto holdings and facilitates liquidity access without selling long-term positions. The move reflects broader financial-sector acceptance of digital assets as other major banks expand custody and trading services amid clearer regulation. JPMorgan began exploring Bitcoin lending in 2022 and has increased its crypto exposure despite prior executive skepticism.
Read at Bitcoin Magazine
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