Stacy Pereira
- JPMorgan is exploring crypto-backed loans for the first time, allowing clients to borrow using Bitcoin and Ethereum as collateral: FT Report.
- The bank will likely rely on third-party custodians like Coinbase, and not provide custodial services itself.
- The move, which is still under consideration, could come into effect by 2026.
Banking major JPMorgan Chase is reportedly exploring introducing loans secured directly by clients’ cryptocurrency holdings, like Bitcoin and Ethereum, an FT Report claimed. In the past, the bank allowed clients to borrow against crypto ETFs like BlackRock’s iShares Bitcoin Trust. This move, which could be introduced as early as next year, would mark the first time JPMorgan would accept actual crypto collateral.
This represents a considerable shift under CEO Jamie Dimon, who famously labeled Bitcoin a “fraud” years ago. However, in recent months, he’s softened his tone, slowly warming up to cryptos. He had accepted that while he advised against cryptos, he wanted the bank’s customers to have the freedom to choose. He also confirmed that JPMorgan is preparing to engage more with stablecoins alongside its private JPMorgan Depositcoin.
Despite Dimon’s past criticisms about leverage, illicit use, and money laundering, JPMorgan plans to facilitate crypto purchases. However, the bank has stopped short of custodial services, preferring to partner with established custodians like Coinbase if needed, the report said. The bank has already initiated lending against crypto ETFs and is considering the next step, such as direct crypto-backed products.
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Major banks turning to crypto?
According to the FT, this initiative, which is still under consideration, could begin in 2026. It comes amid a broader industry trend where major financial firms like Bank of America and Citigroup are actively developing stablecoins in response to a more crypto-friendly regulatory environment. The US recently passed its first major stablecoin regulation, which has banks welcoming the clarity.
If implemented, this would signal a major expansion of crypto into mainstream financial services. It would help embed digital assets deeper into traditional banking portfolios. While plans remain tentative, the move shows the growing acceptance of crypto among big banks and JPMorgan’s willingness to join the evolving digital-asset ecosystem.
