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Bitcoin News Update: JPMorgan’s Significant Move Confirms Crypto as Accepted Mainstream Collateral

Bitcoin News Update: JPMorgan’s Significant Move Confirms Crypto as Accepted Mainstream Collateral

Bitget-RWA2025/10/24 18:10
By: Bitget-RWA
- JPMorgan Chase will let institutional clients use Bitcoin and Ethereum as loan collateral by 2025, signaling crypto's growing acceptance in mainstream finance. - The move triggered Bitcoin's $111,000 surge and reflects CEO Jamie Dimon's pragmatic shift from dismissing crypto to supporting client demand. - By leveraging third-party custodians and blockchain infrastructure, JPMorgan aims to boost crypto liquidity while addressing volatility risks through overcollateralization. - This aligns with Wall Stree

JPMorgan Chase & Co. is poised to transform the convergence of traditional banking and digital currencies by enabling institutional clients to use

and as collateral for loans by late 2025, . Multiple outlets, including , , and , have verified this development, which represents a significant milestone in bringing cryptocurrencies into mainstream finance and demonstrates increasing institutional trust in digital assets. The initiative will utilize third-party custodians to hold the pledged cryptocurrencies, directly addressing concerns about asset security and custody.

The news has already impacted financial markets. Bitcoin climbed past $111,000, and Ethereum rose by 2%, with analysts describing the move as "extremely bullish" for the crypto sector, as reported by Coindesk. JPMorgan’s stock also experienced a slight increase, reflecting investor approval of the bank’s new direction. This follows JPMorgan’s earlier decision in June 2025 to accept crypto-based ETFs as collateral, highlighting a steady and intentional expansion into digital assets.

Bitcoin News Update: JPMorgan’s Significant Move Confirms Crypto as Accepted Mainstream Collateral image 0

This shift marks a dramatic change from the previous views of JPMorgan CEO Jamie Dimon, who once referred to Bitcoin as a "pet rock" and a "hyped-up fraud." Dimon has since softened his stance, now emphasizing his support for clients’ freedom to invest in crypto. The bank’s move reflects a practical response to client demand and mirrors a broader trend on Wall Street, where regulatory relaxation under the Trump administration has encouraged major banks to expand their crypto offerings. Institutions like Morgan Stanley, BNY Mellon, and State Street have all broadened their custody and trading services, while Goldman Sachs has already issued loans backed by Bitcoin.

JPMorgan’s new program is anticipated to boost liquidity for institutional holders of crypto, allowing them to borrow against their BTC or ETH without selling, as highlighted by Coindesk. This could help ease selling pressure during downturns and attract more risk-averse institutional investors. The bank’s Onyx platform, which has handled over $1 trillion in tokenized transactions, further demonstrates its dedication to blockchain technology, according to

. Still, there are hurdles to overcome. The volatility of cryptocurrencies requires strong risk controls, such as overcollateralization and continuous monitoring.

The impact of this move reaches beyond

. It could speed up regulatory developments, as seen in regions like the European Union, Singapore, and the UAE, and prompts new questions about the future role of central banks and whether crypto could rival traditional collateral assets like gold or government bonds. The crypto community has largely welcomed the news, seeing it as evidence of the sector’s growing legitimacy.

As JPMorgan gears up for a worldwide launch, attention turns to how other financial institutions and regulators will react. With Bitcoin ETFs drawing in $62 billion in net inflows since 2024, the environment is ripe for further advancements. Nonetheless, challenges remain, including potential regulatory resistance and market swings. For now, JPMorgan’s decisive action highlights a clear reality: the integration of crypto into mainstream finance is now unstoppable.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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