JP Morgan Now Considers Offering Cryptocurrency-Backed Loans

After the formal introduction of the U.S. stablecoin bill, major American banks have begun supporting the integration of digital assets into mainstream financial services.

According to insiders, JPMorgan Chase is considering offering loans collateralized by clients’ cryptocurrency holdings, such as Bitcoin and Ethereum. These plans could be rolled out as early as next year, though they may change before implementation.

This move not only highlights how major banks—and the broader regulated financial industry—are increasingly open to deeper engagement with cryptocurrencies but also marks a significant shift in stance from JPMorgan CEO Jamie Dimon.

Compared to Dimon’s earlier rhetoric on Bitcoin—such as calling it a “fraud” that will eventually blow up—the CEO has recently softened his tone, stating, “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin.”

During last week’s earnings call, when asked whether JPMorgan was exploring cryptocurrency payment technology, Dimon said the bank must embrace stablecoins to keep pace with competitors.“We’re going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it,” Dimon said. “I think they’re real, but I don’t know why you’d want to [use a] stablecoin as opposed to just payment.”

As U.S. regulatory attitudes toward crypto assets evolve, more banks are accepting cryptocurrencies.

Last week, U.S. President Trump officially signed the GENIUS Act, the first federal-level legislation targeting crypto assets, marking stablecoins’ formal entry into a regulated framework. Compared to the Biden administration, Trump’s second term has leaned toward deregulation.

Amid this favorable regulatory environment, many banks have taken steps to embrace crypto assets. More than 10 globally systemically important banks-including Citigroup, JPMorgan Chase, Bank of America, Morgan Stanley, and Wells Fargo-have made substantive moves in stablecoins and other crypto-related areas.

However, JPMorgan’s latest consideration of crypto-collateralized loans still faces significant hurdles, and few banks are willing to venture into this space. For instance, to offer loans directly backed by cryptocurrencies, JPMorgan would need to resolve technical challenges, such as how to handle seized crypto assets from clients who default on repayments.

Like most U.S. banks, JPMorgan does not hold cryptocurrencies on its balance sheet.

To address this, the bank may partner with third parties to custody crypto assets on its behalf. Currently, companies like cryptocurrency exchange Coinbase provide such services.