JPMorgan Chase, the largest bank in the U.S. and one of the most powerful institutions in global finance, is going deeper into Bitcoin. The bank is reportedly going to allow wealthy clients to use shares of Bitcoin ETFs—specifically BlackRock’s iShares Bitcoin Trust (IBIT) — as collateral for loans.
This is a big move from the Wall Street giant and a sign of how traditional finance is changing the way it treats bitcoin.
According to a Bloomberg report, JPMorgan will let trading and wealth-management clients borrow money using digital asset ETFs like IBIT as collateral—the same way clients might use stocks, real estate or even cars.
The bank will also factor clients’ digital asset holdings into calculations of net worth and liquidity. So now, bitcoin will be treated like real estate or company shares when assessing a client’s loan repayment ability.
This is set to launch in the coming weeks and will start with IBIT which has over $70 billion in assets. IBIT is now the largest spot bitcoin ETF in the world and has far outpaced competitors like Fidelity’s FBTC.
Previously JPMorgan only allowed bitcoin ETFs as collateral on a case-by-case basis, Bloomberg reports. This decision will now make it available to all wealth-management clients.
JPMorgan’s new Bitcoin-friendly strategy comes despite its CEO Jamie Dimon’s long-time skepticism of Bitcoin. For years, Dimon has been one of the most vocal critics of Bitcoin, calling it a tool for criminals and comparing it to a “pet rock.”
But in a change of heart, Dimon recently said the bank would allow clients to buy bitcoin. At JPMorgan’s annual Investor Day, he said, “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin.”
Related: JPMorgan Chase to Allow Clients to Buy Bitcoin, Says CEO Jamie Dimon
While Dimon remains personally unconvinced about the long-term value of bitcoin, the bank seems to be moving forward with embracing bitcoin, a move Bitcoin advocates believe is rooted in fear of missing out on possible profits and losing market share.
JPMorgan is following the trend on Wall Street. Other big financial players like Fidelity, Grayscale, and Standard Chartered have launched services for clients to invest or trade bitcoin.
The approval of Bitcoin ETFs by the U.S. SEC in 2024 has opened the door to millions of investors who were hesitant to enter the Bitcoin space.
Institutional interest is surging as the political landscape is also opening doors for digital assets. Under President Donald Trump’s administration, several Bitcoin-friendly policy changes have been introduced.
In April 2025, the Federal Reserve withdrew past guidance that discouraged banks from working with digital asset companies. Soon after, the US Office of the Comptroller of the Currency confirmed banks could hold customer’s bitcoin in custody.
