JPMorgan Chase & Co. is set to further its involvement in digital assets by allowing institutional clients to use Bitcoin and Ether as collateral for loans by the end of 2025.

The move marks a significant expansion in Wall Street’s approach to bitcoin adoption among major financial institutions.

New collateral program announced

The program will be offered globally and is designed to let institutions pledge their bitcoin holdings, as well as ether, to secure loans issued by JPMorgan.

According to sources familiar with the matter, a third-party custodian will be responsible for safeguarding the pledged tokens, ensuring added security for both the bank and its clients.

Part of a broader integration trend

This new initiative builds on JPMorgan’s earlier decision to accept bitcoin-linked ETFs as collateral for financing, reflecting a growing trend among banks to integrate bitcoin into traditional financial services.

The step comes as demand for institutional bitcoin products continues to rise, with more firms seeking ways to leverage their digital asset holdings without liquidating them.

Institutional demand and market impact

By enabling bitcoin-backed loans, JPMorgan is responding to increased interest from clients looking to access liquidity while retaining exposure to bitcoin price movements.

This approach could further legitimize bitcoin as a mainstream asset on Wall Street and provide additional utility for large holders.