World’s largest bank JPMorgan is now exploring Bitcoin and Ethereum-backed loans, against clients’ crypto holdings. From chief Jamie Dimon calling Bitcoin a “fraud” to now leveraging the asset class for loan instruments, the bank has taken a complete 180-degree turn. This pivot comes amid strong institutional demand for top crypto assets BTC, ETH in recent months.
JPMorgan’s Bitcoin and Ethereum-backed Loans to Go Live Soon
The latest report from Financial Times, noted that the largest global bank could start offering Bitcoin, Ethereum-backed loans as early as 2026. However, sources familiar with the matter also stated that plans of lending against crypto assets are subject to change. This pivot comes soon after the Market Structure Act aka CLARITY Act came into effect last week, thereby introducing clear crypto regulations.
Further, top crypto assets are gaining familiarity among traditional banking and financial institutions, with top asset managers like BlackRock, Fidelity introducing key investment products.
A source familiar with the matter said Dimon’s early remarks on Bitcoin, including his threat to fire any trader dealing in it, resulted in loss of business by alienating potential clients. As institutional conviction in crypto grows, JPMorgan has no option but to pivot. Much recently, banking chief Jamie Dimon has also softened his tone on crypto. In May, Dimon said:
“I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin. Go at it”.
Embracing Digital Assets Amid White House Shift
As sentiment in Washington shifts, more banks are warming up to crypto. The White House will release its Crypto Policy report on July 22, with expectations from the Trump administration to bring lighter regulatory oversight compared to President Biden’s approach.
Morgan Stanley is reportedly considering offering crypto trading via its E*Trade platform. JPMorgan has already begun making inroads into the sector, with plans to offer lending against holdings in crypto exchange-traded funds (ETFs).
Furthermore, with GENIUS stablecoin act in place, the Jamie Dimon-led bank is exploring stablecoin offerings to compete with existing players like Tether, Circle. Taking the next step, accepting crypto assets themselves as collateral, would mark a deeper commitment.
Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.
He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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