Investment banking giant JPMorgan Chase plans to allow institutional clients to use its bitcoin and ether holdings as collateral for loans before the end of the year, according to a Bloomberg report.
Tokens pledged under the global program will be safeguarded by a third-party custodian and extends JPMorgan’s previous move to accept crypto-linked ETFs as loan collateral.
This development reflects the growing integration of digital assets into Wall Street’s core credit infrastructure. With Bitcoin reaching record highs this year and regulatory hurdles easing under the current administration, major banks like JPMorgan are moving from skepticism to actively incorporating cryptocurrencies into their financial services.
Other leading firms, including Morgan Stanley, State Street and Fidelity, are also deepening their cryptocurrency offerings, launching retail access and custody solutions, according to the report.
