Investment banking giant JPMorgan Chase is preparing to offer a groundbreaking service that allows its global clients to use Bitcoin and Ether as collateral for loans. This move reflects Wall Street’s deepening embrace of cryptocurrency and could significantly enhance the appeal of Bitcoin and Ether to institutional investors by maximizing their asset utility. According to a Bloomberg report citing insiders, JPMorgan plans to safeguard these digital assets via a third-party custodian. This new offering follows months of speculation and could follow the historic approval of the first US spot Bitcoin exchange-traded fund (ETF) in early 2024. While JPMorgan has considered crypto-backed loans since mid-2023, official adoption might come as late as 2026. The bank has also expressed an ongoing interest in stablecoins, with CEO Jamie Dimon emphasizing the importance of understanding this emerging asset class. JPMorgan was an early US bank adopter in crypto, launching its own dollar-pegged stablecoin, JPM Coin, in 2020, and investing in spot Bitcoin ETFs in 2024. Notably, the bank’s leadership has shifted from skepticism towards a more open stance on blockchain and smart contract technologies. This latest initiative is poised to offer institutional investors a new level of access and utility in the cryptocurrency space.