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The Coin Rise 2025-06-05 08:00:38

JPMorgan to Offer Loans Backed by Bitcoin ETFs as Wall Street Warms to Crypto

JPMorgan Chase — the largest bank in the United States by assets — is preparing to allow trading and wealth management clients to use crypto-related assets, including Bitcoin exchange-traded funds (ETFs), as collateral for loans. According to a June 4 report by Bloomberg, the offering is expected to roll out in the coming weeks, starting with BlackRock’s iShares Bitcoin Trust (IBIT), the largest U.S. spot Bitcoin ETF with over $70.1 billion in assets under management. The move signals growing institutional acceptance of Bitcoin and digital assets, particularly following the success of spot Bitcoin ETFs earlier this year. JPMorgan’s program will let clients pledge crypto-linked ETFs to access liquidity and factor digital asset holdings into net worth calculations. JPMorgan CEO Stays Skeptical but Expands Bitcoin Access Despite JPMorgan CEO Jamie Dimon’s long-standing criticism of cryptocurrencies, the bank’s crypto footprint continues to grow. In May, Dimon acknowledged the growing client demand and said that JPMorgan would soon allow clients to purchase Bitcoin. Still, he reiterated his personal reservations about crypto, likening its use to smoking: “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin.” JPMorgan has been gradually building its crypto infrastructure since launching its dollar-pegged stablecoin, JPM Coin, in 2020. More recently, the bank disclosed that it holds shares in several spot Bitcoin ETFs, further indicating its expanding interest in digital asset markets. The decision to offer crypto-collateralized loans places JPMorgan among a small but growing group of U.S. financial institutions exploring the integration of blockchain-based assets into traditional financial services. Trump Administration Eases Crypto Rules for Banks JPMorgan’s latest initiative also comes as U.S. regulatory attitudes toward crypto shift under the Trump administration. In April 2025, the Federal Reserve rescinded guidance that discouraged banks from engaging in crypto-related activities , including stablecoin services. A month later, the Office of the Comptroller of the Currency affirmed that banks could legally custody digital assets for their customers. With regulatory barriers easing and institutional products maturing, the line between traditional finance and digital assets continues to blur. The post JPMorgan to Offer Loans Backed by Bitcoin ETFs as Wall Street Warms to Crypto appeared first on TheCoinrise.com .

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