Wall Street Deepens Crypto Embrace as JPMorgan Readies Bitcoin-Backed Lending

Reading Time: < 1 minute

In a major boost for institutional crypto adoption, JPMorgan Chase is launching a program that will let its institutional clients borrow against their Bitcoin and Ether holdings. The service, expected to go live globally by year-end, will use a third-party custodian to secure the digital collateral.

This new offering solves a key challenge for institutional crypto investors: unlocking the value of their digital assets without triggering a taxable sale. By pledging the coins directly, firms can secure liquidity for other investments or operational needs.

This is a step beyond the crypto ETFs the bank already accepts, providing a more direct and potentially efficient financing tool.

The move places JPMorgan alongside other financial giants like BNY Mellon and Fidelity, who are also expanding their crypto custody and financing services in response to rising demand and regulatory progress.