Investment banking giant JPMorgan Chase plans to let institutional clients use their bitcoin and ether holdings as collateral for loans at the end of the year, according to a Bloomberg report.
The tokens pledged under the global program will be protected by a third-party custodian and extend JPMorgan’s previous move to accept crypto-linked ETFs as loan collateral.
This development reflects the rapidly growing integration of digital assets into Wall Street’s core lending infrastructure. With Bitcoin hitting record highs this year and regulatory hurdles easing under the current administration, major banks like JPMorgan are shifting from skepticism to actively incorporating crypto into their financial services.
Other leading firms, including Morgan Stanley, State Street and Fidelity, are also deepening their crypto offerings, launching retail access and custody solutions, the report said.
