JPMorgan will accept Bitcoin and Ethereum as loan collateral by the end of 2025, deepening its crypto strategy despite CEO Jamie Dimon's public skepticism toward cryptocurrencies.
The largest bank in the United States, JPMorgan Chase, is preparing to take one of its most significant steps in the digital asset ecosystem. According to Bloomberg, the entity will allow its institutional clients to use their direct holdings of Bitcoin and Ethereum as collateral for loans, an initiative scheduled to be implemented globally later this year.
For experts, this move will not only dramatically expand the bank's crypto offerings, but will also deepen the complex duality between the firm's pragmatic strategy and the persistent public skepticism of its CEO, Jamie Dimon.
This decision to allow the use of Bitcoin and Ethereum as collateral represents a calculated development. Earlier this year, JPMorgan had already begun accepting cryptocurrency-linked exchange-traded funds (ETFs) as collateral. The new program goes a step further, removing the ETF layer and allowing institutions to use the underlying assets, BTC and ETH, directly. To manage the risk inherent in the volatility of these crypto assets, an independent third-party custodian will safeguard the cryptocurrencies for the duration of the loan.
Overall, this development underscores the rapid pace at which traditional finance is integrating digital assets into its core operations. Bitcoin and Ethereum are being treated, functionally, like any other asset: stocks, bonds, or gold.
JPMorgan accepts Bitcoin as collateral. Buy BTC on Bit2Me.From ETFs to Bitcoin and Ethereum: The answer to growing crypto demand
JPMorgan's expansion into the crypto market, according to experts, is a direct response to institutional demand that sources at the bank have described as "skyrocketing."
In a year marked by new all-time highs, with Bitcoin reaching $126.000 earlier this monthAccording to Coingecko records, large investors are looking for liquidity options. They now want to access capital without being forced to sell their cryptocurrency positions, which they consider strategic for the long term.
Source: Coingecko
The American bank is attending This need for their clients to gain exposure to cryptocurrencies so as not to be left behind in a competitive race. Wall Street giants such as Morgan Stanley, BNY Mellon, State Street, and Fidelity are accelerating their own crypto product and service offerings. This environment, fostered by a crypto-friendly government administration, with President Donald Trump pushing for regulatory easing to accelerate digital innovation, has given financial institutions the confidence to deepen their integration.
JPMorgan's recent move simplifies access to capital for its clients and has the potential to unlock significant liquidity currently dormant in BTC and ETH portfolios. It's a functional change that further legitimizes cryptocurrencies as a valid asset class within the traditional financial system.
Trade crypto and access loans, hassle-free, here"I defend their right to buy it": Jamie Dimon's pragmatic dissonance on crypto
The most notable aspect of JPMorgan's new crypto strategy is that it is being developed under the leadership of Jamie Dimon, one of Wall Street's most prominent Bitcoin critics.
For years, Dimon has dismissed the leading cryptocurrency, calling it a "hyped-up fraud" or a "pet peddler." In 2017, he even threatened to fire any employee found trading Bitcoin "in a second."
However, commercial reality has prevailed. Dimon has moderated his approach, although he maintains his personal skepticism. "I defend your right to buy Bitcoin""I don't think we should smoke, but I defend their right to do so," Dimon said at an investor conference in May, Bloomberg reported, using a tobacco analogy.
The key to this apparent contradiction lies in Dimon's distinction between technology and cryptocurrency. At Fortune's Most Powerful Women summit on October 14, Dimon expressed clear support for Bitcoin's underlying technology. He stated that "Blockchain is real", while explaining that he sees enormous potential in this technology to replace "clumsy" financial systems, such as intraday repo lending.
However, Dimon's vision favors private, permissioned networks, such as JPMorgan's Kinexys, where the bank retains control over the rules and participants. This stands in stark contrast to the public, decentralized nature of networks like Bitcoin and Ethereum. At that same event, Dimon declined to comment directly on Bitcoin, joking that he didn't want it to be the focus of headlines or receive "death threats."
Ten days after those comments, the news of his bank accepting BTC and ETH as direct collateral for loans highlights the true dynamic at play: the CEO's personal philosophy has given way to business strategy.
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In short, JPMorgan's decision to accept Bitcoin and Ethereum as collateral is both symbolic and functional. It demonstrates that, regardless of the personal views of its leaders, major banks can no longer ignore the demand for digital assets. The integration, which began cautiously through regulated vehicles like ETFs, is now moving toward direct acceptance of the underlying asset.
JPMorgan, which according to insiders shelved a similar project in 2022, has reactivated its plans in a market completely transformed by demand and a more favorable regulatory environment.
So the bank, which once viewed Bitcoin as a supposed fraud, now pragmatically accepts it as collateral to lead the convergence between cryptocurrencies and high finance.
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