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JPMorgan Chase announced plans to permit institutional clients to use 
Bitcoin and Ether holdings as collateral for loans by the end of 2025, Bloomberg reports.
What's the scoop?
- Program Rollout: The global initiative will enable clients to use BTC and ETH for credit lines and loans, with third-party custodians handling token safekeeping.
- Prior Policy Extension: The move builds on JPMorgan's existing acceptance of crypto ETFs as collateral for similar arrangements.
Bankless Take:
As the largest bank in the U.S. — (and the fifth largest globally) — JPMorgan's expansion into direct crypto collateral, not just ETF collateral, marks a further thaw in traditional finance's approach to digital assets, following ETF approvals and stablecoin pilots. While details were not shared about whether the borrowing would happen offchain or onchain, we can presume it’s the former. Still this marks a significant step in the legitimizing of cryptocurrency assets and also demonstrates which two tokens institutions trust most currently.
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