JPMorgan Will Now Accept Crypto ETFs as Loan Collateral

Jimmy Aki
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JPMorgan, the biggest U.S. bank by assets, is quietly supporting crypto products. The bank plans to allow trading and wealth-management clients to use crypto ETFs as collateral for loans. This shift signals a growing acceptance of digital assets in traditional finance, particularly among U.S. corporate and financial institutions.

Is the iShares Bitcoin Trust the First of Many Crypto ETF Collaterals?

According to an exclusive report by Bloomberg, JPMorgan will first accept BlackRock’s iShares Bitcoin Trust (IBIT) as collateral.

The crypto product, which is one of the most popular spot Bitcoin ETFs, is now a bridge between crypto and traditional finance.

By backing loans with this fund, JPMorgan signals that some digital assets are mature enough to stand beside stocks and bonds in modern portfolios.

This could unlock new liquidity for clients without the need to sell crypto positions. It’s a flexible solution, especially during volatile markets.

But that’s not all. In some instances, JPMorgan will begin factoring crypto holdings into a client’s total net worth, including both liquid and illiquid assets.

This effectively means crypto could now be treated like artwork, cars, or real estate when evaluating borrowing power.

This is not a sudden leap. JPMorgan’s journey into crypto has been gradual.

Back in 2020, it launched JPM Coin, its dollar-pegged stablecoin. In 2024, the bank disclosed owning shares in several spot Bitcoin ETFs.

In May, CEO Jamie Dimon confirmed that customers can now buy Bitcoin directly through the bank. But the bank will not custody the asset for its clients. Instead, it will only record Bitcoin holdings in customer statements.

Still, JPMorgan’s recent moves, from allowing Bitcoin purchases to accepting crypto ETFs as loan collateral, are opening new doors in traditional finance.

FOMO Triggers Institutions and Governments to Ride the Crypto Adoption Wave

Behind JPMorgan’s latest shift lies a deeper force: the fear of missing out (FOMO).

Crypto adoption is rising fast. Institutions that once hesitated are now scrambling to catch up. For traditional banks, sitting on the sidelines is starting to look like a liability.

Voices pushing for change are getting louder.

In a CNBC interview, Eric Trump warned that banks ignoring Bitcoin and overall crypto adoption could vanish within a decade. In his view, digital assets are reshaping finance at its core. Banks can choose to adapt or be left behind.

The U.S. government is also making moves. The California State Assembly recently passed AB 1180 in a unanimous 68-0 vote.

This bill allows state agencies to accept cryptocurrency payments under the Digital Financial Assets Law (DFAL).

If signed into law, California will join Colorado, Florida, and Louisiana in accepting crypto for public services.

Even cities are getting involved. At the 2025 Bitcoin Conference, New York City Mayor Eric Adams announced plans to push for BitBond (a Bitcoin-backed municipal bond).

Under his proposal, 90% of the proceeds would fund infrastructure, while the remaining 10% would be used to purchase Bitcoin.

Investors would receive 1% interest per year, plus any upside from Bitcoin’s future gains.

Beyond the U.S., global momentum is building. In Brazil, Binance has integrated with Pix, the country’s instant payment system.

This lets users pay everyday bills using over 100 cryptocurrencies that are instantly converted to Brazilian reais.

Meanwhile, Dubai has taken an even bigger step. Last month, its Department of Finance signed an agreement with Crypto.com to process all government service fees using cryptocurrency.

As crypto gains ground in public and private sectors alike, institutions realize they may not have the luxury of waiting much longer.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.