JPMorgan Chase plans to let institutional clients use Bitcoin (BTC) and Ethereum (ETH) as collateral for loans by the end of 2025, according to a Bloomberg report. 

The new program, expected to roll out globally, will rely on a third-party custodian to safeguard pledged assets. The bank already allows crypto-linked exchange-traded funds (ETFs) as collateral, but this expansion would enable clients to borrow against their direct crypto holdings.

The shift could make it easier for institutions to access liquidity without selling long-term digital asset positions — a use case that has gained traction among hedge funds and family offices.

The development represents a broader acceptance of digital assets across the financial sector.  Other major banks, including Morgan Stanley, BNY Mellon, State Street, and Fidelity, have been expanding crypto custody and trading services amid increasing regulatory clarity in the U.S. and abroad.

JPMorgan first began exploring lending against Bitcoin in 2022 but the project was delayed, according to Bloomberg.

Jamie Dimon’s changing tone on crypto

JPMorgan CEO Jamie Dimon has long been one of crypto’s most vocal skeptics, previously calling Bitcoin a “fraud” and a “pet rock.” In 2023, he said he was “deeply opposed” to Bitcoin and claimed it was used mainly for illicit activity.

However, his tone has recently softened. “I don’t think we should smoke, but I defend your right to smoke,” Dimon said earlier this year. “I defend your right to buy Bitcoin, go at it.”