JPMorgan Looks to Offer Crypto‑Backed Loans

In June, JPMorgan quietly began offering loans collateralised by crypto exchange-traded funds (ETFs), initially, BlackRock’s iShares Bitcoin Trust (IBIT), to select trading and wealth-management clients.

A Financial Times report published in July reveals the next evolution: raw cryptocurrency holdings, including Bitcoin and Ether, would qualify as collateral for fiat loans. This would represent a notable shift, moving from indirect exposure via ETFs to direct crypto-backed financing.

JPMorgan CEO Jamie Dimon has long expressed skepticism about cryptocurrencies. In 2017, he described Bitcoin as “a fraud” and discouraged employee involvement in crypto trading. Over the years, he has reiterated concerns, at one point referring to Bitcoin as a “decentralised Ponzi scheme.” His reservations have largely focused on issues such as market volatility, misuse in illicit activities, and regulatory uncertainty.

However, in recent months his tone has softened. In May, Dimon stated: “I don’t think you should smoke, but I defend your right … to buy Bitcoin. Go at it.” He also confirmed that while JPMorgan would enable clients to acquire crypto, it would not provide custody services.

JPMorgan’s pivot aligns with a broader industry trend. In mid‑2025, the U.S. Congress enacted the GENIUS Act, establishing a clear federal framework for payment stablecoins with strict oversight, backing, and disclosure rules. Regulators, including the Federal Reserve, FDIC, and OCC also rescinded prior guidance on crypto‑asset and stablecoin activities, and the OCC reaffirmed that banks can custody crypto assets. These coordinated moves have notably reduced regulatory uncertainty and encouraged banks, including JPMorgan, to deepen their crypto engagement.

Peers are also stepping forward. Morgan Stanley is assessing crypto trading, while Citibank and Bank of America are exploring stablecoins. Even super‑regional PNC recently partnered with Coinbase to offer crypto trading to retail clients.

A major concern with crypto‑backed loans is asset custody and liquidation. JPMorgan is expected to mitigate such risks by partnering with third-party custodians, likely established firms such as Coinbase, so it does not hold crypto on its balance sheet.

Such custodial arrangements help manage challenges surrounding the seizure of collateral in borrower defaults and reinforce regulatory compliance around anti‑money‑laundering measures.

For institutional and high‑net‑worth clients, being able to leverage crypto holdings without selling could be game‑changing. They gain liquidity while retaining upside potential if prices rise. This fits a growing trend: digital assets maturing into legitimate collateral options.

Despite the progress, key questions remain: What collateral‑to‑loan ratios will JPMorgan apply? Will they include risk buffers to accommodate crypto's notorious volatility? And will the bank eventually expand beyond Bitcoin and Ether to altcoins?

Timing also remains fluid, with a potential launch window between late 2025 and early 2026. Terms could shift depending on market conditions and pending regulations, as officials assess systemic risk and consumer protection.

JPMorgan’s evolving stance underscores a broader recalibration. What was once an outright rejection of digital assets is now a cautious acceptance, steered by client demand, regulatory clarity, and competitive pressures. Including crypto collateral in lending goes beyond PR or signaling; it grounds digital assets in financial reality.

If the bank proceeds, it could mark a turning point: traditional finance embracing digital native assets as mainstream financial tools. For clients, this brings new flexibility; for the industry, a fresh opportunity and challenge to reconcile innovation with risk management.