JPMorgan Chase & Co. is set to allow its high – net – worth clients to use shares of cryptocurrency exchange – traded funds (ETFs) as collateral for loans, marking a significant expansion of the bank’s embrace of digital assets, according to sources familiar with the plan.
The move, expected to roll out in the coming weeks, will enable clients in JPMorgan’s wealth management division to leverage holdings in crypto ETFs—such as BlackRock’s iShares Bitcoin Trust or ProShares’ Bitcoin Strategy ETF—to secure loans, similar to how traditional assets like stocks or bonds are used. The bank will assess the collateral value based on the ETFs’ market prices, with safeguards withering in place to manage volatility, including margin requirements and periodic revaluations.
This decision comes as major financial institutions increasingly view crypto – related assets as viable components of diversified portfolios. JPMorgan had previously limited crypto – based collateral to case – by – case evaluations, but the new policy signals a systematic integration of digital asset ETFs into its lending framework. The bank aims to cater to clients seeking liquidity while holding crypto investments, avoiding the need to sell assets during market fluctuations.
“By accepting crypto ETF shares as collateral, JPMorgan is aligning its services with evolving client demands in the digital asset space,” said a banking industry analyst, who noted that the move could strengthen the bank’s competitiveness among wealthy investors active in cryptocurrencies.
The move also follows regulatory clarity in the U.S. that has encouraged banks to expand crypto – related services. While risks remain—including crypto’s price volatility—the bank’s risk management teams have reportedly structured the program to mitigate potential losses, such as by limiting the types of ETFs accepted and imposing lower loan – to – value ratios compared to traditional assets.
JPMorgan declined to comment on the specific details of the plan, but sources said the initiative is part of a broader strategy to integrate digital assets into its wealth management offerings, alongside services like crypto custody and trading that the bank has explored in recent years. For clients, the ability to use crypto ETFs as collateral could unlock new financial flexibility, allowing them to access funds for other investments without liquidating their digital asset positions.
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