JPMorgan to Accept $111K Bitcoin, Ethereum as Collateral for Loans
JPMorgan has just announced that it's going to start letting people use Bitcoin (BTC) and Ethereum (ETH) as collateral for loans...
Quick overview
- JPMorgan will allow Bitcoin and Ethereum to be used as collateral for loans, targeting affluent Wall Street professionals.
- The bank plans to launch this program by the end of the year, as part of a broader trend among major financial firms embracing cryptocurrency.
- JPMorgan also intends to offer loans backed by crypto-based ETFs, starting with BlackRock's Bitcoin ETF.
- This move aligns with increasing regulatory support for digital assets, making them more mainstream and appealing to investors.
JPMorgan has just announced that it’s going to start letting people use Bitcoin (BTC) and Ethereum (ETH) as collateral for loans, and they’re specifically targeting people who work on Wall Street and have a pretty penny to their name. Bloomberg reported back on October 24 that the massive bank plans to get this program up and running by the end of the year, though they’re still ironing out the final details.
This move is part of a bigger trend of big Wall Street firms starting to dip their toes into the world of cryptocurrency – Firms like BlackRock, Morgan Stanley and Goldman Sachs are really starting to cater to people who want to get in on the crypto action. That’s probably because loads of people are getting more and more interested in crypto, and the regulators are starting to make life a little bit easier for these big banks.
JPMorgan also plans to start offering loans that are backed by crypto-based exchange traded funds (ETFs), with BlackRock’s Bitcoin ETF being the first one to get this treatment. They want to figure out a way to fold crypto into the way that clients measure their wealth – basically, they want to make it so that people can count their crypto as part of their net worth.
JPMorgan to let institutions use #Bitcoin & #Ethereum as collateral for loans.
This marks a massive leap for Wall Street adoption, bridging crypto & TradFi. 🚀$BTC now trades above $111K.#BTC #ETH #JPMorgan #CryptoNews pic.twitter.com/1djthr9irb
— Chain Whisperer (@_chainwhisperer) October 24, 2025
Market Context and Regulatory Momentum
JPMorgan’s move is kind of coinciding with a whole bunch of other developments in the world of crypto regulation. The Market Structure Act and the GENIUS Act are just a couple of examples of laws that are trying to provide a framework for how all this stuff should work. Coinbase’s Brian Armstrong is apparently pretty optimistic about the future – he thinks that one of these laws is going to pass before the end of the year, and that it’s going to make it easier for people to invest in and trade digital assets.
Other big banks are also trying to get in on the crypto action:
- Morgan Stanley has partnered up with a company called ZeroHash to let E-Trade clients trade Bitcoin, Ethereum, and Solana.
- A bunch of major banks are apparently going to start offering crypto-backed loans sometime in the first half of 2026.
- More and more wealth managers are starting to take crypto into account when they’re putting together investment portfolios for their clients.
Having all this momentum and support from the big banks and the regulators really is helping to make digital assets look a lot more mainstream than they used to. Plus, it’s probably helping to reduce some of the risks that people used to worry about when they were investing in unregulated platforms.
Is this the institutional pivot? Bitcoin hit 111K after the CZ pardon and Bloomberg says JPMorgan will let some clients post BTC and ETH as collateral. CPI could whip prices. Flows favor BTC while alts bleed. Are you rotating or fading? #Bitcoin #Ethereum #Crypto 🚨
— CryptoNews24 (@info_cryptonews) October 24, 2025
BTC Valuation and Market Sentiment
JPMorgan’s analysts recently made the argument that Bitcoin could go all the way up to $165,000. That’s because they think it’s still pretty undervalued compared to how much gold has gone up in value recently – right now, Bitcoin is trading for over $111,300, which has actually helped it to increase by 1.68% in the past 24 hours. However, trading volume has actually dropped off a bit in the last day or so, probably because traders are waiting for some other big events to play out – like the US CPI inflation report, for example.
But with JPMorgan now saying that it’s okay for people to use Bitcoin and Ethereum as collateral for loans, that might help to increase demand and make more people interested in the crypto-backed lending market.
By helping to bring regulated banking and the digital asset markets together, JPMorgan is giving a pretty clear signal that it thinks crypto is definitely worth taking seriously – and that it’s definitely a mainstream financial instrument that sophisticated investors should be paying attention to.
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