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

and Ether as collateral for loans by late 2025, as reported by .

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

. This shift coincides with broader regulatory changes, such as the Trump administration’s crypto-friendly stance and new policies emerging in the EU, Singapore, and the UAE, according to .

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

reported.

As financial giants like

, BNY Mellon, and Citigroup broaden their crypto offerings, the industry’s credibility continues to grow. Nonetheless, issues such as custody risks and price swings persist. For now, the combination of institutional participation and innovative projects highlights the changing role of cryptocurrencies in the global financial landscape.