JPMorgan Embraces Crypto ETFs as Loan Collateral Amid Institutional Shift
JPMorgan Chase & Co., the largest bank in the United States, has announced it will now allow clients to use cryptocurrency-linked exchange-traded funds (ETFs) as collateral for loans. This groundbreaking move signifies the bank’s growing openness to digital assets and marks a major step in integrating cryptocurrencies into traditional finance. Initially, the policy will apply to BlackRock’s iShares Bitcoin Trust (IBIT), with more crypto ETFs expected to be included in the near future.
This new policy will span globally and be available to all client categories—from retail investors to institutional clients—reflecting a strategic pivot by JPMorgan toward accommodating crypto within mainstream financial services. In a significant shift, cryptocurrency holdings will also now be considered when calculating a client’s net worth and liquidity for lending purposes, similar to how stocks, luxury assets, or fine art are treated.
The decision coincides with the broader financial sector’s growing interest in digital assets. Institutions like Morgan Stanley are also exploring deeper integration of crypto services. President Donald Trump’s administration has created a favorable regulatory climate for digital currencies since returning to office, further encouraging banks and asset managers to expand their crypto offerings.
Fueling this transformation is the explosive success of spot Bitcoin ETFs, which were launched in January 2024 and now manage a combined $128 billion in assets. Bitcoin’s value has surged as well, hitting an all-time high of $111,980 in May 2025—further validating the demand for institutional-grade crypto exposure.
Despite JPMorgan’s proactive adoption of blockchain technologies and partnerships with crypto firms like Coinbase, CEO Jamie Dimon remains personally skeptical of Bitcoin. However, he supports clients’ freedom to invest in the asset. Meanwhile, the bank is expanding internationally, seeking a merchant banking license in Nigeria to transform its long-standing Lagos office into a fully operational branch, aiming to offer dollar-denominated loans and bolster its regional presence in West Africa.
Source: Nairametrics