JPMorgan Chase announced in March 2026 that it will allow institutional clients to use Bitcoin and Ethereum as collateral for U.S. dollar loans through its Kinexys digital assets platform, with custodians such as Fidelity Digital Assets and Coinbase Custody holding the assets. The announcement follows years of public criticism from CEO Jamie Dimon, who previously described Bitcoin as a fraud, and follows earlier filings of Bitcoin‑backed structured notes tied to BlackRock’s IBIT exchange‑traded fund. Other major banks, including Goldman Sachs, Citigroup and Bank of America, are developing similar tokenized deposit or collateral arrangements. The program applies haircuts of 30% to 50% on crypto collateral, meaning a $100,000 Bitcoin pledge could secure $50,000 to $70,000 in financing. Real‑time price feeds from oracle providers such as Chainlink update valuations continuously, and margin calls trigger automatic liquidation if collateral values fall below predetermined thresholds. Custody and credit functions are separated, with third‑party custodians holding the tokens and a permissioned blockchain recording pledges. The service initially targets wealthy clients and institutions, with potential retail expansion later. Competitors are expected to introduce comparable offerings, mirroring the market dynamics that followed the introduction of prime brokerage services in the 1990s. Risks include price volatility that could generate margin calls and liquidation pressure, custodial failure risk, and potential regulatory changes. Accounting standards may require updates as banks treat Bitcoin as loan collateral. The program’s long‑term viability will depend on competitor adoption, compression of haircuts, and performance during market stress tests, as well as forthcoming guidance from the Office of the Comptroller of the Currency and regulatory actions by the Securities and Exchange Commission.