According to the Financial Times on Tuesday, which cited people familiar with the situation, JPMorgan Chase (JPM.N) is looking at plans to offer loans guaranteed by clients’ cryptocurrency holdings, including bitcoin and ethereum, as early as next year.
As part of a larger drive for more crypto-friendly regulation in Washington, other big U.S. institutions, such as Bank of America (BAC.N) and Citibank (C.N), are also creating stablecoins.
The bank will be associated with stablecoins, according to a recent statement from CEO Jamie Dimon, a longstanding bitcoin skeptic.
JPMorgan told the FT that it would not comment. A request for comment from Reuters outside of regular business hours was not immediately answered by the bank.
Dimon told investors in May that he is “not a fan” of the bitcoin universe, citing issues with leverage, misuse, and money laundering in the system. He also said that he would not get into custody, which would involve holding cryptocurrency assets for clients, or grow significantly even if regulations were to loosen.
He compared the approach to allowing activity that he personally disapproves of. “We’re going to allow you to buy it, we’re not going to custody it,” he said.
JPMorgan Chase is reportedly exploring a groundbreaking initiative: offering loans secured by clients’ cryptocurrency holdings, including flagship assets like Bitcoin and Ethereum, possibly launching as early as next year ReutersFinancial Times. This potential move marks a significant strategic pivot for the traditional banking giant, especially following its prior acceptance of crypto exchange-traded funds as collateral Financial TimesLedger Insights.
This development is particularly striking given JPMorgan CEO Jamie Dimon’s long-standing skepticism toward cryptocurrencies. In the past, Dimon criticized Bitcoin as a “fraud” and expressed concerns over its potential misuse. Yet, his stance appears to be softening: in May, he stated, “I defend your right to buy Bitcoin,” even as he made clear the bank would not provide custody services Financial TimesReuters.
The shift is occurring in a markedly more favorable regulatory environment. The recent passage of the GENIUS Act—a federal framework for stablecoins—and other crypto-related legislative initiatives signal growing political acceptance of digital assets Fn LondonBarron’s.
Nevertheless, challenges remain. Crypto’s volatility necessitates careful underwriting and collateral valuation, while regulatory compliance—particularly in managing seized digital assets in case of default—poses additional complexity American BankerThe Defiant. JPMorgan is expected to partner with third-party custodians like Coinbase to securely manage crypto collateral Financial TimesMitrade.
By potentially offering loans backed directly by crypto holdings, JPMorgan would be at the forefront of integrating digital assets into mainstream finance. As the landscape evolves, regulated institutions like JPMorgan may increasingly wield influence over the next chapter of the crypto-finance convergence.
