JPMorgan Chase is looking into the possibility of giving loans backed by customers’ cryptocurrencies, like Bitcoin and Ethereum, starting next year. This is a big change from CEO Jamie Dimon’s view in 2017 when he called Bitcoin a “fraud.” This shift reflects a broader trend as more people and institutions adopt digital assets, with the total value of the crypto market expected to reach $4 trillion by 2025 amid changing U.S. regulations.
JPMorgan to Offer Crypto-Backed Lending Services
If JPMorgan offers these loans, customers could use their Bitcoin and Ethereum as collateral, similar to how people use stocks or real estate. The bank has already started accepting BlackRock’s iShares Bitcoin Trust as collateral, showing more acceptance of digital assets in traditional finance.
The latest move fits into a wider trend of institutional investors getting more comfortable with digital assets. As regulations become clearer, banks like JPMorgan are shifting their strategies to meet the demand for crypto services.
However, introducing these loans would come with challenges like determining the value of collateral and ensuring its safety. To reduce risks, JPMorgan would likely create strict rules. For example, it might require borrowers to keep more crypto collateral than the amount of the loan.
A Welcome Regulatory Shift
JPMorgan’s interest in crypto-backed loans aligns with new U.S. laws, including the GENIUS Act signed by President Trump on July 18, 2025. The law marks a major shift in how the government views crypto assets, offering clearer guidelines for banks to serve digital asset markets. As rules become less strict, big banks are ready to take a bigger role in the crypto world.
Dimon’s changing views on crypto show that institutions are starting to accept digital assets more. As the financial landscape changes, JPMorgan’s move into crypto-backed lending could influence other banks to follow.
As regulations become clearer and investors get more used to cryptocurrencies, the lines between traditional banking and digital assets will blur. With its resources and expertise, JPMorgan is in a strong position to connect traditional finance with digital assets, paving the way for a more inclusive and innovative financial system.
