JPMorgan Chase & Co. (NYSE:JPM) is reportedly preparing to let institutional clients use their Bitcoin (BTC-USD) and Ether (ETH-USD) holdings as collateral for loans by year-end.
The global program will use a third-party custodian to hold the pledged tokens, Bloomberg reported, citing people familiar with the plan. The program expands on JPMorgan’s earlier move to accept crypto-linked ETFs as collateral.
The initiative highlights how rapidly cryptocurrencies are becoming integrated into mainstream finance. With Bitcoin’s strong rally this year and the Trump administration easing regulatory constraints, major banks are moving to embed digital assets into their lending and custody operations.
Morgan Stanley (MS), for instance, plans to give retail clients on its E*Trade platform access to major cryptocurrencies beginning in the first half of next year. Meanwhile, State Street Corp., BNY Mellon, and Fidelity are expanding their crypto custody services. Recent rule changes have also enabled firms like BlackRock (BLK) to accept Bitcoin from investors and convert it into ETF holdings tracking the token.