Despite years of CEO Jamie Dimon trashing Bitcoin as a “fraud” and “worthless,” JPMorgan is now embracing the very assets he scorned. The banking giant announced it will accept Bitcoin and Ethereum as collateral for institutional loans starting late 2025. Funny how money talks, huh?
This isn’t for everyday customers though. JPMorgan’s program targets big institutional clients only, those with deep pockets and deeper connections. These clients can now pledge their crypto assets without having to sell them off when they need cash. Pretty convenient evolution for a bank whose boss once threatened to fire employees for trading Bitcoin.
JPMorgan’s crypto embrace isn’t for you—just their elite clients with the right connections and bulging portfolios.
The program expands on JPMorgan’s earlier move allowing crypto ETFs as collateral. Now they’re going straight to the source—actual digital assets. The bank initially implemented a policy allowing crypto-linked ETFs as collateral in lending agreements in June 2025. Third-party custodians will handle the crypto, keeping everyone’s hands clean while mitigating risks. Smart move.
Financial experts see this as a turning point. Traditional banking is finally admitting what crypto enthusiasts have known all along—digital assets aren’t going anywhere. The program should attract more institutional players into crypto markets. More liquidity, more legitimacy. The bank plans to leverage smart contracts to automate loan terms and collateral management.
Dimon’s stance has evolved from outright hostility to reluctant acceptance. He’s publicly stated he’ll defend clients’ right to own Bitcoin, even while maintaining personal skepticism. Talk about a 180-degree turn!
Risk management remains central to the initiative. Conservative loan-to-value ratios will apply. No selling or rehypothecation of the collateral will occur during loan terms. JPMorgan isn’t taking any unnecessary chances with volatile assets.
The implications stretch beyond one bank. This signals to the entire financial world that crypto has arrived at the institutional level. Other banks will likely follow suit. The bank’s move has been made possible due to recent regulatory clarification in the US market.
From “fraud” to financial instrument in just a few years. Banking’s relationship with crypto just got a whole lot more interesting. Wall Street meets blockchain, and nobody’s calling security.
