JPMorgan to Offer Crypto-Backed Loans in Major Shift Toward Digital Assets
JPMorgan Chase is preparing to launch a new lending service that will allow clients to use cryptocurrencies like Bitcoin and Ethereum as collateral, signaling a significant step forward in Wall Street’s embrace of digital assets.
The offering, expected to roll out as soon as next year, would enable clients to secure loans directly against their crypto holdings. Currently, JPMorgan permits borrowing against crypto-linked investment products such as BlackRock’s iShares Bitcoin Trust—but not the underlying cryptocurrencies themselves.
This planned expansion highlights a broader trend among major U.S. banks, which are increasingly modernizing lending practices to include digital assets. The shift comes amid a more favorable regulatory environment for crypto, spurring traditional financial institutions to explore new ways to serve client demand.
While JPMorgan CEO Jamie Dimon has long been skeptical of cryptocurrencies—once calling Bitcoin a “fraud”—his stance has evolved in recent years. Dimon now acknowledges that clients should have the freedom to buy and use crypto, even though the bank itself will not hold cryptocurrencies on its own balance sheet.
To manage the risks of custody and potential defaults, JPMorgan is expected to partner with trusted third-party custodians like Coinbase, which will hold the crypto collateral on behalf of clients.
The move positions JPMorgan among the growing number of legacy banks adapting to the digital finance era—balancing innovation with institutional safeguards.
Featured image from: bitcoinist.com