JPMorgan Chase will enable institutional clients to use Bitcoin and Ether as collateral for loans in a new global program launching by the end of the year. A third-party custodian will hold the assets.
This expands upon the bank’s existing policy of accepting crypto-linked ETFs. The new program allows for the pledge of the actual cryptocurrencies, providing a more direct path to liquidity for institutions wishing to hold their digital assets.
The move reflects the accelerating integration of cryptocurrencies into mainstream finance. JPMorgan joins a growing list of major firms, including BNY Mellon and Fidelity, in developing crypto-based financial services, aided by evolving regulatory frameworks in the U.S. and abroad.
