What happened?
JPMorgan announced it will let institutional clients borrow using Bitcoin and Ethereum as loan collateral by the end of 2025. The program will be available globally and use a third-party custodian to hold the pledged tokens. This builds on prior tests with crypto ETFs and other steps JPMorgan has taken to integrate crypto into its banking and blockchain services.
Who does this affect?
Institutional investors like asset managers, hedge funds, family offices, and large corporate clients who hold BTC and ETH will be able to access credit without selling their crypto. Custodians, crypto service providers, and rival banks will face pressure to offer similar custody and lending products. Retail investors are indirectly affected because more institutional activity and new credit products could change liquidity, pricing, and market behavior.
Why does this matter?
Accepting BTC and ETH as collateral further legitimizes these tokens and is likely to attract more institutional capital and credit into the crypto market. That added demand can provide price support and greater liquidity, but it also introduces counterparty and margin-call risks that could amplify volatility. Overall, folding crypto into Wall Street plumbing speeds mainstream adoption, forces competitors to innovate, and could reshape credit, custody, and derivatives markets for digital assets.