JPMorgan Opens Door to Bitcoin and Ethereum Collateral for Institutional Clients

Core Insights - JPMorgan will allow institutional clients to use Bitcoin and Ethereum as loan collateral by the end of 2025, marking a significant step in integrating digital assets into mainstream finance [1] - The program will be offered globally and will utilize third-party custodians for secure holding of pledged crypto assets, with a potential launch by the end of this year [2] - This initiative builds on JPMorgan's previous acceptance of crypto-linked ETFs as collateral, starting with financing against BlackRock's iShares Bitcoin Trust [3] Company Perspective - CEO Jamie Dimon maintains a cautious stance on cryptocurrencies, previously labeling Bitcoin as a "hyped-up fraud" and expressing opposition to crypto, despite the bank's initiatives [4] - The bank is adopting a more pragmatic approach, having allowed clients to purchase Bitcoin and introduced the J.P. Morgan Deposit Token as an alternative to stablecoins [5] Blockchain Developments - JPMorgan's blockchain network, Kinexys, has seen significant growth, with average daily transaction volumes exceeding $2 billion, and has expanded into carbon markets, supply-chain finance, and cross-border payments [6]