Bitcoin News Today: Bitcoin, Ethereum Now On Par With Gold in JPMorgan's Collateral Framework

JPMorgan Chase & Co. is set to allow institutional clients to use Bitcoin and Ethereum as collateral for loans by the end of 2025, marking a pivotal step in the integration of cryptocurrencies into traditional finance. The move, reported by Bloomberg and corroborated by Crypto.news, reflects growing institutional demand for crypto exposure and aligns with broader efforts by global banks to embrace digital assets. The program will rely on third-party custodians to secure the pledged tokens, addressing regulatory and security concerns while expanding access to crypto-backed lending.

The initiative builds on JPMorgan's earlier acceptance of crypto-linked ETFs as collateral, such as BlackRock's iShares Bitcoin Trust (IBIT). By extending this framework to direct crypto holdings, the bank aims to provide institutional clients with greater flexibility to leverage their Bitcoin and Ethereum assets without liquidating them. This approach mirrors similar strategies adopted by Swiss banks and other U.S. financial giants, signaling a shift toward mainstream adoption of crypto in credit markets.

JPMorgan's decision could unlock significant liquidity for crypto holders, enabling them to access financing while maintaining exposure to potential price appreciation. Analysts note, in a TradingView report, that this model may reduce taxable events for long-term investors, who can borrow against their holdings instead of selling them. The move also positions Bitcoin and Ethereum as equivalent to traditional assets like stocks and gold in terms of collateral value, further legitimizing their role in institutional finance.

The program's timing coincides with broader trends in crypto integration. For instance, JPMorgan recently launched its digital deposit token, "JPMD," on Coinbase's Base network, and expanded its blockchain-based payment infrastructure through Kinexys, according to BeInCrypto. Meanwhile, competitors like Morgan Stanley and BlackRock are also deepening their crypto offerings, reflecting a competitive push to capture emerging opportunities in the digital asset space.

Market reactions have been cautiously optimistic. Bitcoin and Ethereum have shown modest gains in recent weeks, with Bitcoin trading near $110,595 and Ethereum at $3,924 as of late October 2025. While JPMorgan's CEO Jamie Dimon has previously criticized Bitcoin as a "pet rock," the bank's pragmatic approach underscores the growing acceptance of crypto among traditional financial institutions.