① JPMorgan has recently considered offering loans backed by cryptocurrencies such as Bitcoin and Ethereum, demonstrating an increasing interaction between the Banking Industry and Cryptos; ② These plans may be available as early as next year, but changes may occur before formal implementation; ③ This move marks a shift in JPMorgan CEO Jamie Dimon’s attitude toward Cryptos, evolving from early criticism to a now more open stance.

According to a report on July 22 by Financial Association (Editor: Zhou Ziyi), major banks in the United States have begun to support digital assets entering mainstream Business since the formal introduction of the U.S. stablecoin bill.

According to industry insiders, JPMorgan is considering offering loans secured by customers’ owned cryptocurrencies, such as Bitcoin and Ethereum, with plans to be available as early as next year, although changes may occur before formal implementation.

This move not only highlights that large banks and even the broader regulated financial Industry are increasingly opening up to closer interactions with Cryptos, but also marks a significant shift in JPMorgan CEO Jamie Dimon’s attitude toward Cryptos.

Compared to Dimon’s earlier rhetoric about Bitcoin, such as “Bitcoin is a fraud that will ultimately ruin” it, the CEO’s tone has softened recently as he stated, “It’s like I think you shouldn’t smoke, but I defend your right to smoke. Now I defend your right to buy Bitcoin, go ahead.”

During last week’s Earnings Reports conference call, when Dimon was asked if JPMorgan is exploring the technology of cryptocurrency payments, he stated that the bank needs to adopt stablecoins to keep up with competitors, “We will at the same time engage with JPMorgan’s deposit coin and stablecoin to understand it and excel at it.”

Embracing Cryptos.

As the regulatory stance of U.S. authorities towards Cryptos changes, more and more banks are accepting Cryptocurrencies.

Last week, President Trump officially signed the “National Stablecoin Innovation and Regulatory Act,” referred to as the “Genius Act.” This is the first federal legislation in the United States targeting crypto assets, marking the formal entry of stablecoins into the regulatory framework. Compared to the Biden administration, Trump’s second term is more inclined towards relaxing regulations.

Based on a friendly regulatory environment, several banks have taken steps to embrace crypto assets, including Citibank, JPMorgan, Bank of America, Morgan Stanley, Wells Fargo, and more than ten global systemically important banks engaging in substantial arrangements in the field of stablecoins and other cryptos.

As for the cryptocurrency mortgage loan service that JPMorgan is currently considering, there are significant hurdles, and not many banks are willing to get involved. For example, to provide loans directly secured by cryptocurrency, JPMorgan needs to address the technical issue of how to handle the confiscated crypto assets from clients who default on their loans.

Like most American banks, there are no cryptocurrencies on JPMorgan’s balance sheet.

To this end, JPMorgan may collaborate with third parties to have them custodian crypto assets on JPMorgan’s behalf. Currently, companies like the cryptocurrency Exchange Coinbase offer such services.