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JPMorgan Said to Let Institutions Pledge Bitcoin and Ether for Loans by Year-End

The reported program would use approved third-party custodians, expanding on the bank’s recent move to accept crypto-linked ETFs as collateral.

Overview

  • Bloomberg-cited sources say the global offering could launch before the end of 2025 and would allow institutional clients to borrow against BTC and ETH.
  • Pledged tokens would be held with third-party custodians rather than by JPMorgan, according to the reports.
  • JPMorgan declined to comment on the unannounced plan, which reportedly builds on its policy of accepting crypto ETF shares as loan collateral.
  • The move is portrayed as part of a wider shift as major firms including Morgan Stanley, BNY Mellon, State Street, and Fidelity expand digital-asset services.
  • Coverage highlights that managing crypto collateral may require tighter mark-to-market practices, margining frameworks, and custodial safeguards for 24/7 markets.