JPMorgan, America's largest bank, will soon allow its clients to use crypto assets as collateral for loans. This change is taking place amid a warming regulatory environment for digital assets in the US.
New Opportunities for Clients
According to a Bloomberg report, JPMorgan will permit its clients to use shares of BlackRock’s iShares Bitcoin Trust, one of the largest Bitcoin ETFs in the USA, to secure loans. This will allow clients to factor in their crypto holdings when assessing their financial worth and liquidity.
Jamie Dimon's Skepticism
Despite the expanded offerings for clients, Jamie Dimon, the CEO of JPMorgan, has long been skeptical about Bitcoin. He has previously referred to it as a 'pet rock' and stated that its true use case was linked to illegal activities. However, he recently confirmed that the bank will start allowing clients to purchase Bitcoin.
Changes in Regulatory Environment
Recent changes in the regulatory landscape have also contributed to this move. In April 2025, the US Federal Reserve rescinded guidance that hindered banks from engaging with crypto assets. The Office of the Comptroller stated in May that banks can now buy and sell crypto held in custody at clients' direction.
JPMorgan's shift towards integrating crypto assets into its operations highlights the increasing pressure from institutional investors to embrace cryptocurrencies, which could have significant market implications.
