According to Bloomberg, JPMorgan Chase intends to let its institutional clients use Bitcoin and Ether as collateral for loans. This event would be a significant milestone in Wall Street's cryptocurrency acceptance.
The program, expected to launch at the end of 2025, will store clients' digital assets with a third-party custodian to ensure security and risk management. This action builds on JPMorgan's previous acceptance of crypto-linked ETFs as collateral and reflects a rising faith in Bitcoin and Ether among traditional banking institutions.
This move may make Bitcoin and Ether more appealing to institutional investors by allowing them to use their holdings for liquidity without selling.
It also shows a turnaround in JPMorgan's stance, given CEO Jamie Dimon's previous mistrust of cryptocurrencies. Despite previous criticism, Dimon has accepted investors' rights to buy Bitcoin and Ethereum, demonstrating the bank's shifting strategy.
Stablecoins and crypto ETFs continue to gain popularity, with Bitcoin ETFs seeing considerable inflows, increasing trust in digital assets as part of mainstream finance.
