JPMorgan Chase & Co., the largest bank in the United States, has announced a groundbreaking move to allow trading and wealth management clients to use cryptocurrency-linked exchange-traded funds (ETFs) as collateral for loans. This development marks a significant step toward institutional adoption of digital assets and reflects growing confidence in the long-term viability of blockchain-based financial products.
JPMorgan Embraces Crypto-Backed Assets for Lending
Starting with BlackRock’s iShares Bitcoin Trust (IBIT), JPMorgan will begin accepting select Bitcoin ETFs as collateral in its lending operations. More ETFs are expected to be added as the program expands. Previously managed on a case-by-case basis, the new policy is a formal, global rollout applicable to all clients, from retail investors to large institutional firms.
This shift places JPMorgan among a growing number of traditional financial institutions recognising the value of cryptocurrency-based financial instruments.
Global Lending Policy Includes Cryptocurrency in Net Worth Evaluations
Under the updated framework, JPMorgan will now include digital assets in wealth assessments, considering them alongside traditional forms of wealth such as stocks, luxury goods, and fine art. Cryptocurrency holdings will count toward net worth and liquidity evaluations when determining loan eligibility.
This integration is part of a broader effort to modernise asset valuation in a rapidly evolving financial ecosystem.
Regulatory Momentum and Institutional Demand Drive Change
JPMorgan’s move aligns with an increasingly favourable U.S. regulatory environment for crypto, bolstered by President Donald Trump’s administration’s pro-digital asset stance. The rapid growth of spot Bitcoin ETFs, first launched in January 2024, has significantly influenced this trend. As of June 2025, these ETFs collectively manage $128 billion in assets, ranking them among the most successful ETF launches in history.
The soaring value of Bitcoin, which recently reached a record high of $111,980, highlights intensifying institutional interest and investor appetite for crypto exposure.
JPMorgan’s Long-Term Blockchain Strategy
JPMorgan has consistently been a leader in blockchain experimentation within the banking sector. The company maintains active partnerships with major crypto firms like Coinbase and has tested various blockchain applications across payments and asset tokenisation.
Despite CEO Jamie Dimon’s scepticism toward Bitcoin, he acknowledged the importance of client choice at JPMorgan’s 2025 investor day:
“I’m not a fan of Bitcoin. But I defend your right to buy Bitcoin. Go at it.”
Industry-Wide Impact
This policy shift could encourage other banks, such as Morgan Stanley, to advance their crypto integration strategies. It also sets a precedent for treating digital assets as legitimate financial instruments in collateralised lending, pushing the industry closer to full crypto mainstreaming.
