JP Morgan is reportedly preparing to allow its wealthier clients to use shares in cryptocurrency exchange-traded funds (ETFs), such as BlackRock’s iShares Bitcoin Trust, as collateral for loans.

According to unnamed sources cited by Bloomberg, the bank will also begin factoring in crypto holdings when evaluating a client’s net worth and liquid assets.

This would place cryptocurrencies on a similar footing to real estate and vehicles when assessing a borrower’s capacity to repay loans.

The move reflects an ongoing shift in the bank’s stance on digital assets.

JP Morgan’s relationship with Bitcoin has historically been mixed.

Chief Executive Jamie Dimon has repeatedly expressed scepticism, describing Bitcoin as a “pet rock” and suggesting its primary use was for illicit activity.

Nonetheless, he has acknowledged that the bank would allow customers to trade Bitcoin and Ethereum.

Despite its cautious rhetoric, JP Morgan has incorporated blockchain technology, the system underpinning Bitcoin, into its own infrastructure for moving funds.

The bank joins other major financial institutions, including Fidelity and Standard Chartered, in offering clients some level of exposure to the digital asset sector.

Earlier this year, both firms launched crypto trading services for institutional and retail clients.

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