JPMorgan will accept Bitcoin and Ethereum as loan collateral by the end of the year in a historic change.

The movement of the largest bank in the U.S. indicates deepened institutional adoption despite CEO Jamie Dimon's persistent skepticism towards digital assets.

JPMorgan Chase plans to allow institutional clients to pledge Bitcoin and Ethereum as collateral for loans by the end of 2025, marking one of the most significant integrations of cryptocurrencies into Wall Street's traditional lending infrastructure to date.

The program, which will be offered globally, will rely on an external custodian to safeguard the committed digital assets, according to people familiar with the matter on Friday, October 24.

The initiative is based on JPMorgan's previous move in June 2025 to accept cryptocurrency-linked ETFs as collateral, with the new program allowing customers to pledge the cryptocurrencies themselves instead of ETF shares.

A spokesperson for JPMorgan declined to comment on the plans, which have not yet been publicly announced.

From “Fraud” to Financial Collateral

The development represents both a symbolic and functional transformation for the largest bank in the country, whose CEO Jamie Dimon has spent years dismissing Bitcoin with vivid language. Dimon has famously called the cryptocurrency a “fraudulent exaggeration,” a “pet rock,” and even a “Ponzi scheme,” while warning that its main uses are for “money laundering, fraud, sex trafficking, and tax evasion.”

As recently as January 2024, during the World Economic Forum in Davos, Dimon stated that it would be “the last time” he would publicly discuss Bitcoin, claiming that the cryptocurrency “does nothing” except facilitate crime. In a Senate hearing in December 2023, he went further, telling lawmakers that if it were up to him, he would “shut it down,” eliciting a surprised reaction even from crypto-skeptical Senator Elizabeth Warren.

Despite their personal opinions, JPMorgan no longer treats cryptocurrency as a marginal speculation, but as a legitimate asset class worthy of inclusion in the core infrastructure of global finance, pledged as collateral for loans alongside stocks, bonds, gold, and other traditional collateral.

Recently, Dimon has toned down his rhetoric, telling attendees at the JPMorgan investor conference in May: “I don't think we should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin, go ahead.”

Embracing More Broadly Wall Street

JPMorgan is far from being the only major financial institution diving deeper into digital asset services as regulatory winds ease under the pro-crypto stance of the Trump administration. The shift represents a fundamental recalibration of how traditional finance views cryptocurrency, moving from open hostility to cautious integration.

Morgan Stanley announced in September 2025 that it plans to allow clients on its retail platform E*Trade to trade Bitcoin, Ethereum, and Solana directly starting in the first half of 2026. The $1.3 trillion financial giant partnered with cryptocurrency infrastructure provider Zerohash, which recently raised $104 million at a $1 billion valuation to drive the integration.

“We are very advanced in preparing to offer cryptocurrency trading through a partner model to E-Trade clients in the first half of 2026,” said Jed Finn, head of wealth management at Morgan Stanley, in an internal memo. The bank is also developing a wallet solution that will allow it to custody clients' digital assets directly, positioning itself for a future where “clients should have access to digitized assets, traditional assets, and cryptocurrencies, all in the same ecosystem they are used to.”

Other important institutions have similarly expanded their cryptocurrency offerings. State Street Corp., Bank of New York Mellon, and Fidelity now offer various cryptocurrency custody services and related services for institutional clients, reflecting the growing demand from sophisticated investors who want exposure to digital assets within regulated frameworks.

Regulatory Changes

The institutional shift has been partly enabled by significant regulatory changes under the Trump administration. A fundamental development came in July 2025 when the Securities and Exchange Commission, under the new chairman Paul Atkins, approved in-kind creation and redemption processes for all spot Bitcoin and Ethereum ETFs, a fundamental operational improvement that makes these products function more like traditional commodity ETFs.

The change allows companies like BlackRock to accept Bitcoin from investors directly and exchange it for shares of ETFs that track the token, rather than requiring cash transactions that add complexity and potential tax inefficiencies. “It’s a new day at the SEC,” Atkins said in a press release announcing the approval. “A key priority of my presidency is to develop an appropriate regulatory framework for cryptocurrency markets.”

The regulatory change marks a dramatic departure from the previous leadership of the SEC under Gary Gensler, who had maintained strict cash-only requirements for Bitcoin ETFs. BlackRock first requested the ability to transact in-kind in January 2025, with other major issuers, including Fidelity and Ark Invest, quickly following suit.

The rules regulating cryptocurrencies are already in effect in regions such as the European Union, Singapore, and the United Arab Emirates, while legislation to regulate the structure of the cryptocurrency market continues to progress through the U.S. Congress. The convergence of clearer regulatory frameworks with growing institutional demand has created an environment where large banks are becoming increasingly comfortable offering cryptocurrency-related services.

The Crypto Journey of JPMorgan

According to people familiar with JPMorgan's plans, the bank began exploring Bitcoin-backed loans in 2022 but shelved the project amid a challenging market environment and regulatory uncertainty.

Since then, the demand for cryptocurrency support among Wall Street has dramatically increased as the market has matured and regulations have become clearer.

JPMorgan's June 2025 move to accept Bitcoin ETF shares as collateral, starting with BlackRock's iShares Bitcoin Trust (IBIT), represented a first step towards broader cryptocurrency integration.

The new program extends that capability to direct holdings of the underlying cryptocurrencies, eliminating ETF wrapper fees and providing customers with more flexibility in how they leverage their digital asset holdings.

Market Context

The institutional embrace of cryptocurrencies occurs when Bitcoin has shown notable resilience and growth throughout 2025. The cryptocurrency reached an all-time high of $126,296 in early October, surpassing its previous peak of $124,249 in August, before retreating to trade in the range of $108,000-$111,000 following market volatility.

Despite a recent correction that saw more than $19 billion liquidated in leveraged positions in mid-October during the “Great Shock” of 2025, Bitcoin has maintained strong support levels and continues to attract institutional capital.

The current price of the cryptocurrency represents gains of more than 560% since its lows in September 2024, demonstrating the long-term upward trajectory that has captured institutional attention.

Final Reflections

JPMorgan's decision to accept Bitcoin and Ethereum as loan collateral carries significant implications beyond the bank itself. As the largest bank in the U.S. by assets, JPMorgan's moves often indicate broader industry trends and provide validation that encourages other institutions to follow suit.

The ability to use cryptocurrency holdings as collateral for traditional loans unlocks significant utility for institutional investors who have accumulated substantial positions in digital assets but do not wish to trigger tax events by selling. Instead, they can now borrow against their holdings to access liquidity while maintaining their exposure to cryptocurrencies, the same wealth management strategy that has long been available for stocks, bonds, and real estate.

For the cryptocurrency industry, development represents another milestone in the journey from a marginal speculative asset to a conventional one. Each point of integration with traditional finance, whether ETFs, custody solutions, or now direct loans, adds legitimacy and lowers the barriers for institutional capital to flow into the space.

However, challenges persist. The inherent volatility of cryptocurrencies means that banks must implement robust risk management frameworks to protect themselves against fluctuations in collateral value. The reliance on external custodians introduces operational complexities and potential points of failure. And regulatory frameworks, while improving, remain works in progress that could change with political winds.

Still, the direction of the journey seems clear: Wall Street is no longer asking whether to integrate cryptocurrencies, but rather how quickly and thoroughly to do so. JPMorgan's move, despite the personal skepticism of its CEO, underscores that institutional demand has reached a point where even the most cautious banks can no longer afford to sit on the sidelines.

As 2025 comes to a close, the cryptocurrency industry finds itself at a turning point: transitioning from being an alternative asset to an integrated component of the global financial system, with the largest banks in the world serving as reluctant but increasingly committed participants in that transformation.