JP Morgan Chase has announced it will now accept Bitcoin and Ethereum as collateral for institutional loans, including mortgages, marking a dramatic policy reversal. The decision follows regulatory changes by the OCC and Federal Reserve in early 2025 that allow national banks to deepen engagement with digital assets.
The pilot program targets high-net-worth clients and hedge funds, partnering with custodians like Fidelity Digital Assets. Notably, this move comes despite CEO Jamie Dimon's long-standing skepticism toward cryptocurrencies. Market participants view the development as supportive of long-term growth, though short-term price impact remains uncertain.