JPMorgan Chase plans to let institutional clients use Bitcoin and Ether as collateral for loans by the end of the year, according to a Bloomberg report. The move would mark one of the most direct integrations of digital assets into Wall Street’s credit infrastructure.
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Under the proposed program, tokens pledged by clients would be held by a third-party custodian rather than by the bank itself, allowing JPMorgan to manage counterparty exposure and operational risk. The initiative is expected to roll out globally and apply to credit lines and structured financing products, although details around eligibility criteria and valuation practices remain under discussion.
The decision builds on JPMorgan’s June announcement that it would accept shares of Bitcoin and Ether ETPs as collateral for certain derivative and securities financing transactions. By extending collateral policies to the underlying tokens, JPMorgan aims to deepen its digital assets offerings.
