US-based banking giant JPMorgan Chase is considering offering its customers the option to lend using crypto assets like Bitcoin and Ethereum as collateral by 2026. This development, reported by the Financial Times, signals a "U-turn" in the traditional financial world's stance on cryptocurrencies. This new direction by JPMorgan CEO Jamie Dimon, who previously labeled Bitcoin a "scam," suggests the bank is now adopting a more pragmatic approach to crypto assets.
JPMorgan changes course as institutional demand grows
JPMorgan's move comes at a time of growing institutional interest in cryptocurrencies. Major asset managers like BlackRock and Fidelity are entering the market with Bitcoin spot ETF products, while JPMorgan is also heeding the growing demand from its clients. The bank is reportedly aiming for a deeper involvement, offering loans directly through crypto assets rather than just ETF-based products.
Jamie Dimon has been known for his strong opposition to Bitcoin in the past. In 2017, he threatened to fire employees who traded in Bitcoin. However, because these pronouncements were losing customers to the bank, Dimon adopted a softer tone in his recent statements. In May, he stated that he respected individual choices, saying, "I recommend you not smoke, but I will defend your right to smoke. I will also defend the right of anyone who wants to buy Bitcoin."
Regulations are easing, banks are warming up to the sector.
This move also reflects the changing regulatory climate in the US. The "GENIUS Act," signed into law last week by President Donald Trump, provides a clear federal framework for stablecoin issuers. The new regulation requires stablecoins to be fully backed by liquid assets like the US dollar and mandates annual audits for issuers with a market capitalization exceeding $50 billion. It is rumored that JPMorgan is also considering entering the stablecoin sector in this environment.
The White House's crypto policy report, expected to be released on July 22, also signals a more "friendly" stance towards the sector. The Trump administration's shift toward lighter regulations compared to its predecessor, Biden, is also positively impacting the approach of major banks to crypto.
JPMorgan's crypto-collateralized loan plan hasn't been finalized yet, but it's clear the bank is taking serious steps in this direction. If it materializes, JPMorgan clients will be able to secure loans from the traditional financial system using assets like Bitcoin and Ethereum as collateral.
This strategic shift by JPMorgan, led by Jamie Dimon, demonstrates that cryptocurrencies, once marginalized, are now moving into the center of the financial world.
