JPMorgan Opens the Vault for Crypto Collateral
JPMorgan is making its biggest move yet into the crypto space by allowing its trading and wealth clients to borrow cash using crypto-related assets. According to a Bloomberg report, the bank will begin this rollout in the coming weeks, starting with loans backed by BlackRock’s iShares Bitcoin Trust. This new lending policy signals a shift from JPMorgan's previously cautious, case-by-case approach to crypto. Now, it’s going wide—initially with BlackRock’s Bitcoin ETF, then gradually expanding to include other exchange-traded crypto products.
The bank also announced that digital assets like Bitcoin will now be counted in client net worth calculations. That means Bitcoin will join traditional assets like stocks, real estate, and even artwork in determining how much capital clients can borrow. These changes affect all JPMorgan wealth clients globally, from retail investors to the ultra-rich.
Crypto in, Even if Dimon Says “Pet Rock”
Despite the shift in practice, JPMorgan CEO Jamie Dimon remains one of Bitcoin’s loudest critics. At the 2024 World Economic Forum in Davos, he famously quipped:
Yet, even Dimon’s public disdain hasn’t stopped his bank from quietly integrating blockchain tech into its internal systems or serving major crypto clients like Coinbase. The new crypto-backed lending policy is proof that client demand is speaking louder than the CEO’s skepticism. At JPMorgan’s May investor day, Dimon took a more libertarian tone:
The Trump Effect
Behind this major policy shift lies a political tailwind. Since Donald Trump’s return to the White House in January 2025, crypto regulation in the U.S. has loosened considerably. Agencies like the FDIC and the Office of the Comptroller of the Currency have reversed earlier anti-crypto stances, and the Federal Reserve has pulled back on its oversight, though some 2023 restrictions still linger.
One of the most impactful changes was the repeal of SAB 121, which had prevented banks from custodying crypto assets. With that barrier gone, traditional finance firms now have a green light to enter the crypto space more aggressively. That’s especially important for banks like JPMorgan, who are now monetizing crypto demand from high-net-worth clients.
Wall Street Jumps on the Bitcoin Bandwagon
The crypto boom of 2025 is unfolding quickly. After Trump’s election win in November 2024, Bitcoin soared to an all-time high of $111,980 in May. Meanwhile, spot Bitcoin ETFs, first approved in January 2024, now manage over $128 billion in assets. It’s one of the fastest-growing investment products Wall Street has ever seen.
JPMorgan’s rival, Morgan Stanley, is also diving in. The bank is currently working on adding crypto trading features to its E*Trade platform. At Davos, CEO Ted Pick made it clear the firm is “actively exploring ways to engage the crypto market” under the new regulatory environment.
Bridging Bitcoin with Real-World Finance
Despite Dimon’s repeated warnings about crypto’s ties to money laundering, terrorism, and the dark web, JPMorgan’s actions say something very different. By accepting crypto ETFs as loan collateral and adding digital assets to net worth calculations, the bank is mainstreaming crypto as a financial tool. In effect, JPMorgan is making it possible for its clients to use Bitcoin-backed instruments just like traditional assets—not because it loves Bitcoin, but because it sees where the money is going.
