Bitcoin News Update: Dimon Changes Course as JPMorgan Supports Crypto Lending in Response to Market Changes

JPMorgan Chase & Co. (JPM) is preparing to transform its lending operations by enabling institutional customers to use

(BTC-USD) and (ETH-USD) as collateral for loans before the end of the year, as reported by . The initiative, which will utilize a third-party custodian to secure the digital assets pledged, represents a major advancement in bringing cryptocurrencies into the core of traditional finance, according to . This step follows JPMorgan’s previous acceptance of crypto-based ETFs as collateral, including BlackRock’s iShares Bitcoin Trust.

This development highlights a growing movement among established financial institutions to adopt digital assets, fueled by more favorable regulations and a surge in Bitcoin’s value. With Bitcoin hitting a record high of $126,251 earlier this month and the Trump administration easing crypto regulations, leading banks are moving more quickly into the sector, according to

. For example, Morgan Stanley (MS) intends to provide retail investors with access to leading cryptocurrencies through its ETrade platform by mid-2026, while State Street, BNY Mellon, and Fidelity are broadening their crypto custody offerings.

This move by JPMorgan also marks a notable change for a bank that has historically been wary of cryptocurrencies. CEO Jamie Dimon, who once referred to Bitcoin as a "pet rock," has softened his position, saying in May that he "supports your right to purchase Bitcoin" even though he remains personally cautious, as reported by

. The bank’s new direction reflects increasing client interest in crypto services and the evolution of regulatory frameworks worldwide, including those in the European Union, Singapore, and the United Arab Emirates.

By employing a third-party custodian, the program addresses security issues, since

will not have direct control over the crypto assets, as highlighted by CryptoBriefing. This structure is similar to established financial practices, where assets such as equities and precious metals are often managed by external custodians. The global expansion of this program demonstrates JPMorgan’s intent to lead in the integration of digital assets, despite ongoing challenges like price swings and regulatory ambiguity, according to the Business Times.

Industry experts suggest that JPMorgan’s strategy could encourage broader adoption, especially as BlackRock and other companies gain the ability to convert client-held Bitcoin into ETFs, according to analysts at Seeking Alpha. Nevertheless, significant hurdles remain, including the necessity for comprehensive risk management systems and the possibility of regulatory changes with future government administrations, Bloomberg analysts caution.