JPMorgan said it will begin accepting Bitcoin (BTC) and Ether (ETH) as collateral for institutional loans before December 31, 2025. Borrowers who need cash without selling coins will lock their crypto with an outside custodian and receive dollars from the bank. The step links crypto ownership to plain bank credit and changes how large holders cover short term cash needs.
Bloomberg says the plan widens a June 2025 rule that already let clients pledge crypto tracking ETFs like IBIT. JPMorgan will not park the coins on its own books; it will hire custodians who keep the assets in cold storage and multi-signature wallets. Assets remain with outside custodians rather than on JPMorgan’s balance sheet.
To cope with price swings, the bank will use standard risk tools, reset loan-to-value ratios every day, watch prices in real time and call for extra collateral the moment prices drop. Loan-to-value (LTV) is the loan size divided by the market value of the locked coins.
The service will run worldwide so big clients can borrow without leaving the regulated banking system.
Implications, drivers and competitive landscape
Three forces pushed JPMorgan to act: clients asked for a way to raise cash without selling but also paying tax; crypto lenders and rival banks already give such loans; and the launch of spot Bitcoin ETFs showed the market had grown up.
The offer gives institutions a familiar, regulated path to borrow against crypto, but it also brings fresh tasks as well as dangers.
The test is whether the full program starts on time with clear LTV and custody rules. If the rollout works, large investors will gain a simple way to free up cash; if it falters, the bank will import new risks without solving the liquidity problem.
