Breaking: JPMorgan Enables Institutions to Use Bitcoin, Ethereum as Collateral
Highlights
- JPMorgan to allow use of Bitcoin (BTC) and Ethereum (ETH) as collateral for loans.
- The firm to launch the service for institutional and high-net-worth clients by the end of the year.
- JPMorgan predicted BTC price could rally to $165,000.
In a ground-breaking Bitcoin news development today, financial giant JPMorgan on Friday said it plans to allow its institutional and high-net-worth clients to use BTC and ETH directly as collateral for loans. This comes as traditional financial giants such as BlackRock, Morgan Stanley, and Goldman Sachs enter the crypto market amid a pro-crypto regulatory landscape.
JPMorgan Allows Bitcoin and Ethereum as Collateral
Financial services giant JPMorgan will allow the use of Bitcoin and Ethereum as collateral, according to a Bloomberg report on October 24. Only institutional investors and high-net-worth individuals are eligible to leverage BTC and ETH as collateral for loans.
This comes as Wall Street firms reported that their clients seek BTC and ETH exposure amid growing crypto adoption under the crypto-friendly Trump administration. The global bank aims to start offering Bitcoin and Ethereum-backed loans by the end of the year. However, plans of lending against crypto assets are subject to change, as per sources familiar with the matter.
As CoinGape reported earlier, JPMorgan revealed plans to provide loans against crypto exchange-traded funds, starting with BlackRock’s Bitcoin ETF. The bank started taking wealth-management clients’ crypto holdings into consideration when assessing their overall net worth and liquid assets.
However, this comes despite JPMorgan CEO Jamie Dimon’s continued skepticism about Bitcoin as an asset class. He criticized BTC for its utility in illicit activities.
Meanwhile, the Trump administration continues to drive the crypto push, with the Market Structure Act (CLARITY Act) and the GENIUS Act for stablecoins. Coinbase CEO Brian Armstrong said the long-awaited crypto market structure bill will pass by the end of the year amid growing bipartisan support to regulate the crypto industry and protect innovation.
Recently, Morgan Stanley partnered with ZeroHash to enable its E-Trade clients to trade crypto assets, such as BTC, Ethereum, and Solana. The financial giant plans to start offering crypto by the first half of 2026.
BTC Price Prediction by Jamie Dimon-Led Bank
Earlier this month, JPMorgan predicted BTC price could rally to $165,000, claiming it is currently undervalued compared to gold. Analysts argued that the gold price surge has widened the valuation gap, highlighting that Bitcoin’s fair value looks much higher.
At the time of writing, Bitcoin price trades above 111,300, up over 1.68% in the past 24 hours. The intraday low and high are $108,771 and $111,513, respectively. However, the trading volume has tumbled further by 30% over the last 24 hours, as traders brace for crypto market expiry and the CPI inflation data release today.
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