JPMorgan, a leading American bank, has made a groundbreaking decision to use Bitcoin ETFs as collateral for lending to its wealthy clients. This move signals a new era of digital asset integration in traditional finance.
JPMorgan to Sign Loans with Bitcoin ETFs as Collateral
Wall Street is witnessing a paradigm shift as JPMorgan, the largest U.S. bank in terms of assets, prepares to accept Bitcoin ETFs as collateral for loans to its affluent clients. This decision marks a significant milestone in the financial mainstream’s adoption of digital assets.
iBIT from BlackRock at the Forefront
According to Bloomberg, the bank plans to start with BlackRock’s iShares Bitcoin Trust (iBIT), the largest Bitcoin ETF in the U.S. valued at over $70 billion in net assets. Clients can borrow against their holdings in this ETF, following a mechanism similar to traditional stock or bond collateralization.
Furthermore, JPMorgan will now consider its clients’ crypto assets when evaluating their overall wealth. These digital assets will be included in the borrowing capacity calculation, alongside traditional assets.
JPMorgan: Embracing a Crypto Strategy Despite Paradoxes
JPMorgan has been actively involved in the sector, introducing its own stablecoin, JPM Coin, in 2020 and holding stakes in various Bitcoin ETFs since 2024. CEO Jamie Dimon maintains a dual stance, expressing doubts about Bitcoin while acknowledging individuals’ right to invest in it. He recently stated, “I don’t think you should smoke, but I will defend your right to smoke. I will defend your right to buy Bitcoin.”
The Changing Winds in Washington
This JPMorgan announcement aligns with a more crypto-friendly political landscape. Since April 2025, the Federal Reserve has eased restrictions on banks’ involvement with stablecoins. The following month, the Office of the Comptroller of the Currency confirmed that banks could now hold digital assets for their clients.
Simultaneously, the Trump administration unveiled ambitious plans, including establishing a strategic Bitcoin reserve, supporting future stablecoin legislation, and promoting the creation of a national banking stablecoin.
The momentum is clear; changes are happening swiftly. JPMorgan is determined not to be left behind in this rapidly evolving environment.
