JPMorgan to Accept Bitcoin as Loan Collateral by Year-End
JPMorgan plans to allow institutional clients to use Bitcoin and Ethereum as loan collateral globally by the end of 2025.Summary
JPMorgan Chase intends to enable institutional clients to use Bitcoin (BTC) and Ethereum (ETH) as collateral for loans by the close of 2025, according to a Bloomberg report. This global program will utilize a third-party custodian for asset safeguarding and represents an expansion beyond their current allowance of crypto-linked ETFs as collateral. This move is expected to enhance liquidity access for institutions without forcing them to sell long-term digital asset holdings. The development signals broader financial sector acceptance of digital assets, aligning with similar expansions by firms like Morgan Stanley and Fidelity. Despite CEO Jamie Dimon's historical skepticism toward Bitcoin, JPMorgan has steadily increased its crypto exposure, including launching the J.P. Morgan Deposit Token (JPMD). Following the news, Bitcoin prices rose above $111,000.
(Source：Bitcoin Magazine)