JPMorgan Chase is preparing to let institutional clients use Bitcoin, Ether and crypto-backed ETFs as collateral for loans, expanding an earlier policy that focused on crypto exchange-traded funds and derivatives-linked products. According to coverage citing people familiar with the matter, the bank will rely on third‑party custodians to hold the pledged tokens and ETF positions, and will treat them similarly to other liquid securities in its collateral framework, with risk controls such as loan‑to‑value limits and margining. This builds on JPMorgan’s self-directed investing platform, which already allows clients to trade cryptocurrency ETFs, rather than spot crypto, inside brokerage accounts. The move marks a further step in Wall Street’s integration of digital assets into traditional credit markets, using regulated instruments like spot Bitcoin and Ethereum ETFs alongside direct BTC and ETH holdings for secured lending. For JPMorgan’s institutional borrowers, it creates a way to unlock liquidity without selling crypto exposure, while for the bank it opens a new revenue line within a risk-managed, regulatorily supervised structure. Strategically, it underscores how large banks are increasingly treating major cryptocurrencies and their ETFs as part of the broader collateral universe, narrowing the gap between traditional finance and digital asset markets.

AI-generated background, compiled from web sources — not editorial content.

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