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JPMorgan Chase (NYSE:JPM) plans to offer loans secured by clients’ cryptocurrency holdings, specifically Bitcoin and Ethereum, as early as next year, the Financial Times reported, citing people familiar with the matter.
JPMorgan (NYSE:JPM) aims to let clients use their BTC (BTC-USD) and ETH (ETH-USD) as collateral to borrow loans, expanding beyond its current service of lending against crypto ETFs like BlackRock’s iShares Bitcoin Trust (IBIT). The sources indicated that these plans are still under consideration and could change.
CEO Jamie Dimon—who had earlier indicated that he was not a fan, ruling out getting into custody—now seems to have a softer tone on it. “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin. Go at it,” he said in May.
The report pointed to Dimon’s early remarks about bitcoin, where he said he would fire any trader who traded it, which could have alienated some prospective clients who either had made their money through crypto assets or were long-term believers in their potential.
The initiative aligns JPMorgan (JPM) with peers like Bank of America (BAC) and Citibank (C), which are also expanding into digital asset and stablecoin services.
Potentially, JPMorgan’s (JPM) crypto-backed lending could further legitimize cryptocurrencies as collateral in mainstream finance and encourage other banks to follow suit, further accelerating crypto adoption in the broader financial system.
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