JPMorgan Chase, the largest U.S bank by assets, is preparing to launch a new offering that will allow its wealth-management clients to use cryptocurrency exchange-traded funds (ETFs) as loan collateral, marking a significant step toward deeper integration of digital assets within traditional finance.
The bank will now treat crypto ETFs much like traditional assets when assessing clients borrowing capacity. The policy will apply globally, benefiting everyone from retail investors to high net-worth individuals.
Report by Bloomberg reveals that the banking giant will start by accepting shares of BlackRock’s iShares Bitcoin Trust (IBIT) as collateral. Clients will be able to borrow against these ETF holdings, effectively unlocking liquidity without selling their digital assets. The bank is expected to roll out this service in the coming weeks, with plans to expand it to support other Bitcoin ETFs.
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Previously, JPMorgan only allowed crypto ETF-backed loans on a case-by-case basis. However, this new move will standardize and scale this capability, targeting clients with significant crypto holdings to access larger lines of credit.
A Strategic Shift Amid Easing Regulation
This development by JPMorgan comes at a time of regulatory softening in the U.S. towards digital assets.
In 2025, the U.S. has seen a significant shift toward regulatory softening for digital assets, driven by the Trump administration’s pro-innovation stance. On January 23, 2025, President Trump signed an Executive Order titled “Strengthening American Leadership in Digital Financial Technology,” aiming to promote U.S. leadership in digital assets while protecting economic liberty.
It established the Presidential Working Group on Digital Asset Markets, chaired by David Sacks, to develop a federal regulatory framework for digital assets, including stablecoins, with a report due by July 22, 2025.
Also, Wall Street institutions are increasingly embracing crypto. These institutions are beginning to treat Bitcoin as pristine collateral, a milestone that, not long ago, was just a vision among early crypto believers. This embrace of cryptocurrencies has accelerated in 2025, driven by client demand, and the maturing crypto market. Major financial institutions have already begun to integrate digital assets into their operations, marking a shift from skepticism to strategic adoption.
Major banks like Bank of America, Citigroup, and Wells Fargo are reportedly exploring a joint stablecoin project, signaling a collective push into crypto. Goldman Sachs, once dismissive, has invested $1.6 billion in Bitcoin ETFs, while Morgan Stanley allows advisors to recommend these products.
Despite JPMorgan CEO Jamie Dimon’s well-known skepticism of cryptocurrencies, the bank’s recent move underscores a growing institutional demand for digital asset-based financial services. This puts JPMorgan in line with other major financial players like Fidelity and Standard Chartered, both of which have recently launched digital asset trading platforms to serve institutional and retail clients.
Digital Assets Enter The Financial Mainstream
This pivot is part of a broader transformation within the wealth management sector. In 2025, 28% of American adults over 65 million people—own cryptocurrency, and 67% of them plan to increase their holdings, according to recent industry data. Bitcoin’s consistent outperformance of the S&P 500 since 2023 has played a key role in attracting more high-net-worth individuals and institutional investors.
As digital assets evolve from speculative fringe investments to mainstream financial tools, offerings like JPMorgan’s crypto-collateralized lending represent a new era of financial inclusion and flexibility. With crypto increasingly being used as core collateral for sophisticated banking products, the future of wealth management is undoubtedly becoming more digital, diversified, and decentralized.