JPMorgan Chase appears to be moving further into the cryptocurrency space, with reports suggesting the bank may allow clients to use Bitcoin and Ethereum as collateral for loans.
This step would enable institutional clients to borrow against their holdings in the two largest cryptocurrencies, potentially boosting their appeal among professional investors.
According to Bloomberg sources, the bank would store these digital assets with a third-party custodian. If implemented, the initiative could mirror the significance of the first U.S. spot Bitcoin ETF approval earlier this year, signaling broader Wall Street acceptance of crypto assets. JPMorgan has not publicly commented on the report.
Exploring Crypto-Backed Loans and Stablecoins
The bank has reportedly been exploring crypto-backed loans since at least July, though some analysts expect the rollout could take until 2026. JPMorgan’s interest in digital assets extends beyond Bitcoin and Ethereum: during a July earnings call, CEO Jamie Dimon highlighted the bank’s intention to engage with stablecoins to better understand the emerging asset class.
JPMorgan was among the earliest U.S. banks to enter the crypto market. It launched its own dollar-pegged stablecoin, JPM Coin, in 2020 and acquired shares in multiple spot Bitcoin ETFs in 2024. The bank’s involvement comes despite Dimon’s historically skeptical stance toward cryptocurrencies. He once described them as “decentralized Ponzi schemes,” though he has consistently praised blockchain and smart contract technology for their potential.
This move, if confirmed, would mark another significant step in Wall Street’s gradual embrace of digital assets, opening new opportunities for institutional participation and lending innovation in the crypto market.
