TLDR
- JPMorgan plans to offer loans backed by Bitcoin and Ethereum as early as 2026.
- The move follows the CLARITY Act, which provides new U.S. crypto lending regulations.
- Jamie Dimon now supports limited crypto use after calling Bitcoin a “fraud” in 2017.
- JPMorgan already allows select clients to borrow against crypto ETFs like BlackRock’s iShares Bitcoin Trust.
JPMorgan Chase, the world’s largest bank by assets, is preparing to offer loans backed by Bitcoin and Ethereum. This marks a major turn for CEO Jamie Dimon, who once called Bitcoin a fraud. The move follows new U.S. regulations and growing institutional interest in crypto. Dimon, while still skeptical, now supports client access to regulated digital assets without direct custody.
JPMorgan Plans Crypto-Backed Loans Using Bitcoin and Ethereum
JPMorgan Chase is in early discussions to allow clients to borrow cash by using Bitcoin or Ethereum as collateral. These discussions have emerged amid growing interest from institutional investors who prefer to retain their digital asset holdings rather than liquidate them for liquidity.
The lending service could launch by 2026, depending on internal planning and regulatory clearance. A source told the Financial Times that the bank is assessing legal, operational, and risk considerations before making the service available.
JPMorgan has already allowed some clients to borrow against crypto exchange-traded funds, such as BlackRock’s iShares Bitcoin Trust. The new plans would extend this service to the digital assets themselves. A bank spokesperson confirmed the strategy is still under review and could change based on market conditions or compliance issues.
https://x.com/wiseadvicesumit/status/1947527819195814167
The CLARITY Act, recently passed in the U.S., provides a regulatory structure for digital assets. This law has made it easier for traditional financial institutions to create services related to cryptocurrencies. JPMorgan’s decision reflects a broader shift in how banks are responding to these legal changes.
Jamie Dimon Repositions After Years of Bitcoin Criticism
Jamie Dimon has previously voiced concern about cryptocurrencies, especially Bitcoin, citing fraud and misuse as top risks. In past statements, he said he would fire traders who dealt in crypto. However, his position has softened over the last year due to customer demand and market trends.
In May 2025, Dimon stated, “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin.” While he still does not support holding or storing crypto on behalf of clients, Dimon confirmed the bank will allow users to buy Bitcoin through third-party services.
The decision to avoid crypto custody is rooted in concerns about risk, regulation, and security. JPMorgan intends to offer lending services without storing or managing the digital assets directly. This would require strict collateral management protocols in case of defaults or price volatility.
Executives believe this model could attract high-net-worth clients who want access to liquidity without selling their digital assets. The bank’s focus remains on low-risk, compliant strategies that align with its broader financial services model.
U.S. Regulatory Changes Push Banks Toward Digital Asset Services
New laws like the GENIUS Act have provided clearer rules for stablecoins and related products. This has encouraged banks like JPMorgan and others, including Morgan Stanley and Citibank, to explore crypto-related offerings. JPMorgan is also considering launching its own stablecoin to compete with players like Tether and Circle.
Institutional demand has been a key reason behind JPMorgan’s exploration into crypto lending. Asset managers such as BlackRock and Fidelity have already entered the crypto space through ETFs and managed funds. JPMorgan aims to support these trends without taking on the direct risks associated with asset custody.
The bank estimates the stablecoin market could reach $500 billion by 2028. However, it views trillion-dollar predictions as unlikely and continues to follow a cautious approach. Internal models prioritize client demand, regulatory compliance, and risk control before expanding into new crypto services.
The new lending plans, while still developing, reflect how traditional banks are adapting to a changing financial environment. JPMorgan’s measured involvement may influence how other banks approach Bitcoin and Ethereum lending in the near future.
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