JPMorgan Chase & Co., the nation’s largest bank by assets, will begin allowing trading and wealth management clients to use cryptocurrency exchange-traded funds as collateral for loans, marking a significant policy shift as the financial giant adapts to growing institutional demand for digital assets.
The bank will initially accept BlackRock’s iShares Bitcoin Trust, the largest U.S. spot Bitcoin ETF with more than $70 billion in assets, as collateral and plans to expand the program to include other crypto ETFs, according to a Bloomberg report published Tuesday.
The move represents a notable departure from CEO Jamie Dimon’s historically skeptical stance toward Bitcoin, which he has previously called a “Ponzi scheme.” The policy change comes amid a more permissive regulatory environment under the Trump administration, which has reduced barriers for banks to engage with cryptocurrency assets.
Under the new policy, JPMorgan will incorporate clients’ crypto holdings into net worth and liquidity calculations, treating them similarly to traditional assets such as stocks, real estate or art when determining borrowing capacity. The bank previously handled such assessments on a case-by-case basis.
The program will apply globally across all client segments and is expected to launch in the coming weeks, the report said.
The decision reflects broader institutional acceptance of cryptocurrencies following regulatory changes that included the repeal of SAB 121, which had restricted banks from holding crypto assets. The Federal Reserve and Office of the Comptroller of the Currency have also softened anti-crypto policies under the current administration.
Spot Bitcoin ETFs, which launched in January 2024, have grown rapidly to manage more than $128 billion collectively. Bitcoin reached a record high of $111,980 in May, driven by institutional adoption and political support.
Despite Dimon’s personal reservations about Bitcoin, JPMorgan has gradually embraced digital assets. The bank launched JPM Coin, a dollar-pegged stablecoin, in 2020 and reported holding shares in various Bitcoin ETFs in 2024. In May, Dimon indicated the bank would allow clients to buy Bitcoin, comparing it to supporting clients’ rights despite personal disagreements.
Other major financial institutions are also expanding crypto services. Morgan Stanley recently added cryptocurrency trading to its E*Trade platform, reflecting broader industry pressure to meet client demand for digital assets.
The policy allows clients to access liquidity without selling crypto holdings, particularly valuable during volatile market conditions. However, JPMorgan will not provide custody or execution services for crypto ETFs.
Industry observers note the move overrides conservative positions held by some financial infrastructure providers, including the Depository Trust and Clearing Corporation’s zero-collateral policy for crypto ETFs.
Cryptocurrencies remain highly volatile investments, and their use as collateral carries risks related to price fluctuations and regulatory uncertainty. While the current administration supports crypto-friendly policies, future regulatory changes could affect the program’s structure or viability.
The announcement has been viewed as validation of Bitcoin ETFs’ growing acceptance in traditional finance and may encourage other banks to adopt similar policies.
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