JPMorgan Chase (JPM) plans to allow trade and wealth management clients to use certain cryptom-linked assets, including SPOT Bitcoin exchange-dealing funds (ETFs) as a collateral for loans.
From the coming weeks, the bank will offer funding supported by shares in Blackrocks Ishares Bitcoin Trust (IBIT), Bloomberg reported Wednesday with reference to people well known. For some clients, JPMorgan will also factor factor crypto holdings in assessments of the net value and liquidity – which sets them on par with traditional securities such as shares.
The shift comes only weeks after CEO Jamie Dimon said the bank would soon allow clients to buy Bitcoin
There is a remarkable reversal from his prior hard attitude towards digital assets. Dimon has long criticized Cryptocurrencies, especially for their use in illegal activities such as sex trade and money laundering.
Despite these concerns, JPMorgan highlights the growing institutional pressure to accommodate crypto as its footprint in traditional funding is elaborated. Wealth management companies see a wave of client’s demand for exposure to digital assets. The public list of cryptic companies on US exchanges combined with increasing interest from investors ahead of long -term legislative clarity has made it more difficult for banks to ignore the space.
There is also political pressure. With US President Donald Trump back on office, federal agencies are expected to be greatly facilitating the crypto regulation. It puts banks that have historically been wary of the asset class in a tough place. Blocking access to crypto could now look like discrimination, not careful.
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