JPMorgan to Accept Crypto ETFs as Loan Collateral

JPMorgan, the largest bank in the United States by assets, is planning to offer its trading and wealth-management clients the option to use crypto-linked assets as collateral for loans. According to a report, the bank is set to allow financing against crypto exchange-traded funds (ETFs) in the coming weeks. Initially, JPMorgan will focus on BlackRock’s iShares Bitcoin Trust, which is noted as the largest US spot Bitcoin (BTC) ETF with significant net assets.

In addition to accepting crypto ETFs as collateral, JPMorgan will also consider clients’ crypto holdings when assessing their net worth. This approach treats digital assets similarly to traditional ones, thereby determining how much a client can borrow against their assets. This move aligns with JPMorgan's broader strategy of integrating crypto initiatives into its services. In 2020, the bank launched JPM Coin, a dollar-pegged stablecoin, and in 2024, it reported holding shares of different spot Bitcoin ETFs.

JPMorgan CEO Jamie Dimon has expressed a nuanced view on Bitcoin. In May, he stated that the bank would soon allow clients to purchase Bitcoin. However, Dimon also reiterated his skepticism about the asset class, comparing investing in BTC to smoking. He defended the right of individuals to buy Bitcoin, even if he personally does not endorse it.

This development comes amidst a broader regulatory shift in the United States. The Trump administration has been easing restrictions on banks and digital asset businesses. In April 2025, the Federal Reserve withdrew guidance that discouraged banks from engaging in crypto and stablecoin activities. In May, the US Office of the Comptroller confirmed that banks can now handle the crypto assets of customers held in custody. This regulatory environment has encouraged early talks among US banks to launch a crypto stablecoin.

The Trump administration has also announced the creation of a strategic Bitcoin reserve and digital asset stockpile, and is encouraging the passing of stablecoin legislation in the Senate. These regulatory changes and JPMorgan's initiatives reflect a growing acceptance of crypto assets within the traditional financial sector, potentially paving the way for more mainstream adoption of digital currencies.