JPMorgan Connects Wall Street and Cryptocurrency through Collateral Initiative as Regulatory Frameworks Converge
JPMorgan Chase & Co. is ramping up its efforts to blend cryptocurrencies with mainstream finance, planning to let institutional clients use
This initiative, which is part of a larger push to mainstream digital assets, represents one of the most significant integrations of crypto into Wall Street’s lending frameworks. The program, which uses a third-party custodian to hold assets, allows clients to access liquidity without liquidating their crypto, further establishing digital currencies as credible assets alongside stocks and gold, according to
JPMorgan’s move signals a notable change in its approach, as the bank has traditionally been wary of digital currencies. CEO Jamie Dimon, who previously likened Bitcoin to a "pet rock," now allows clients to buy and hold the cryptocurrency, even though the bank itself does not directly safeguard it, as stated by
JPMorgan’s collateral initiative is anticipated to enhance liquidity in crypto markets, which saw $10 billion in institutional lending in the third quarter of 2025, according to Coinpaprika. Regulatory clarity remains a key concern. Trump’s nomination of Michael Selig, the current head of the SEC’s crypto task force, to chair the CFTC, is seen as a step toward unified oversight of digital assets and resolving regulatory uncertainties that have slowed adoption, as
As financial giants like
