Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Wall Street powerhouse JPMorgan Chase & Co. intends to permit institutional clients to leverage their Bitcoin and Ethereum assets for borrowing, as reported by Bloomberg.
The $4 trillion institutional asset manager revealed plans to enable clients to utilize BTC and ETH directly as collateral for loans by the conclusion of 2025.
This globally available program will employ a third-party custodian to safeguard the collateralized tokens, according to sources familiar with the situation.
JPMorgan will allow its institutional clients to use bitcoin and ether as collateral for loans as cryptocurrency continues to be integrated into Wall Street’s infrastructure. A noteworthy scoop from @emilyjnicolle and yet another instance of Life Moves Pretty Fast pic.twitter.com/ej68sOHm9J
— Eric Balchunas (@EricBalchunas) October 24, 2025
This initiative builds on a June announcement, where Cryptonews reported that JPMorgan would pilot crypto collateral loans with BlackRock’s iShares Bitcoin Trust (IBIT), with intentions to broaden access to additional funds post-launch.
JPMorgan Bank to Accept Bitcoin and Ethereum as Loan Collateral
JPMorgan has already started incorporating cryptocurrency into its primary lending functions.
In September, Cryptonews noted that Trimont LLC, a commercial real estate loan servicer managing approximately $730 billion in assets, began utilizing JPMorgan’s Kinexys Digital Payments network.
This system enhances payment processes by recognizing incoming payments, confirming amounts, and distributing funds to lenders. Tasks that previously required up to two days can now be finalized in mere minutes.
Earlier this year, JPMorgan commenced accepting crypto-linked ETFs as collateral. The new initiative allows clients to use the cryptocurrencies themselves instead of ETF shares.
JPMorgan also introduced its digital deposit token, “JPMD,” on Coinbase’s Base network following a trademark application on June 15. JPMD is fully backed one-to-one by U.S. dollars and is exclusively available to institutional clients.
By July, JPMorgan had initiated testing of a blockchain-based platform for carbon credits through Kinexys, developed in collaboration with S&P Global Commodity Insights, EcoRegistry, and the International Carbon Registry.
@Siemens and B2C2 are utilizing @JPMorgan’s Kinexys blockchain to carry out cross-border FX transactions in real time, 24/7.#Crypto #Blockchainhttps://t.co/Nu6Xfx7CvZ
— Cryptonews.com (@cryptonews) October 22, 2025
A recent regulatory update has also enabled firms like BlackRock to accept investors’ Bitcoin and exchange it for ETF shares that track the token.
Related Posts
In addition to BTC and ETH-backed collateral, the U.S. Commodity Futures Trading Commission (CFTC) announced an initiative to allow stablecoins like USDT and USDC to function as tokenized collateral in derivatives markets.
Acting CFTC chair Caroline Pham declared on September 23 that the agency would “collaborate closely with stakeholders” on the directive, referring to it as the “killer app” for modernizing markets by incorporating non-cash collateral.
Reasons Behind Institutions’ Interest in BTC Loans
In an exclusive interview with John Glover, Ledn’s CIO, Cryptonews inquired about the evolution of demand for Bitcoin-backed loans over recent years, and what significant trends or factors have influenced this shift.
John Glover indicated that the most crucial factor in recent years has been a substantial change in public perception of cryptocurrencies as a valid financial instrument.
“The ongoing bull market, combined with the new administration in the U.S., which is significantly more pro-crypto than its predecessor, and the steady influx of institutional capital along with the approval of Bitcoin ETFs, have greatly legitimized digital assets,” he stated.
Consequently, with Bitcoin being the largest, most recognized, and most secure cryptocurrency, it is expected that the demand for BTC-backed loans will continue to rise across the board.
Bitcoin-backed loans are now available.
Borrow USDC against bitcoin, without selling it. Launching for U.S. users (excluding NY) starting now. More collateral assets and regions to follow. Powered by @MorphoLabs and built on @Base.
The future of finance is onchain.
Learn more:… pic.twitter.com/PoLdWLz6aV— Coinbase
(@coinbase) January 16, 2025
(@coinbase) January 16, 2025He added that institutional investors are pivotal in transforming Bitcoin-backed loans into a recognized financial instrument.
Moreover, JPMorgan began investigating lending against Bitcoin in 2022, but the initiative was later put on hold, according to sources who requested anonymity as the bank’s plans are not yet public.
Since then, client demand for cryptocurrency support across Wall Street has surged as the market has expanded and regulations have relaxed.
Other prominent financial institutions have also been accelerating similar offerings, and the evolving stance of regulators has facilitated progress.
Morgan Stanley, State Street, BNY Mellon, and Fidelity have recently broadened their crypto custody, trading, and product offerings.
Meanwhile, legislative developments in the U.S., including efforts on a crypto markets structure bill, have alleviated some compliance challenges for banks considering crypto exposure.
The post Wall Street Giant JPMorgan to Let Institutions Borrow Against Bitcoin and Ethereum Holdings appeared first on Cryptonews.
