JPMorgan Chase & Co. will allow select trading and wealth clients to use cryptocurrency exchange-traded funds (ETFs) as collateral for loans, according to a report by Bloomberg published on June 4.
The bank will begin with BlackRock’s iShares Bitcoin Trust (IBIT) and plans to expand access to other funds after the rollout. The change applies to clients across wealth brackets and marks a shift in how digital assets are factored into credit decisions.
That treatment will align digital assets with other categories, such as equities, vehicles, or artwork, when assessing borrowing capacity. The offering implies internal changes to the bank’s collateral framework, which previously handled crypto ETF-backed loans on a limited basis.
According to people familiar with the matter, JPMorgan will also start including clients’ crypto holdings when evaluating their overall net worth and liquid assets.
CEO Jamie Dimon has maintained skepticism toward digital currencies but acknowledged customer demand. “I don’t think we should smoke, but I defend your right to smoke,” Dimon said at an investor event in May. “I defend your right to buy Bitcoin, go at it.”
The firm was among the first large U.S. banks to adopt blockchain for institutional payment infrastructure and currently serves major crypto clients, including Coinbase.