JPMorgan Plans to Let Clients Borrow Against Bitcoin and Ether by 2026 as Crypto Lending Gains Momentum on Wall Street

JPMorgan Considers Crypto-Backed Loans Amid Shifting Regulatory Climate

JPMorgan Chase is exploring plans to allow clients to borrow money using their cryptocurrency holdings as collateral, a move that would mark a major shift for one of the world’s largest banks and its long-time crypto-sceptic chief executive Jamie Dimon.

From Harsh Critic To Pragmatic Adopter

Dimon has long been one of the financial sector’s most outspoken critics of bitcoin, calling it a “fraud” in 2017 and warning it was fit only for “drug dealers and murderers.”

He even said he would fire any trader caught dealing in it.

But the bank’s approach is gradually evolving.

In May, Dimon took a more measured stance, telling reporters,

“I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin. Go at it.”

According to people familiar with the matter, JPMorgan may begin offering loans against digital assets such as bitcoin and ether as early as 2026, though the timeline could shift.

The initiative, if finalised, would involve third-party custodians to hold the assets on the bank’s behalf, as JPMorgan does not hold crypto directly on its balance sheet.

From ETFs To Direct Crypto Collateral

JPMorgan has already started to lean into the digital asset space by preparing to lend against crypto exchange-traded funds.

Extending that to the actual underlying crypto assets would take the bank a step further than most of its peers.

Goldman Sachs, for instance, still refuses to accept cryptocurrencies as loan collateral.

The shift reflects growing demand from high-net-worth clients and institutional investors who have built wealth in the digital asset space.

Sources say Dimon’s past remarks alienated some potential clients with significant crypto exposure, prompting the bank to reconsider its stance.

Why Washington’s Changing Tone Matters

The timing of JPMorgan’s pivot comes as Washington shows signs of a friendlier stance towards digital assets.

The recently passed GENIUS Act — signed into law by President Donald Trump — introduces a federal framework for regulating stablecoins.

The legislation requires issuers to maintain full reserves in U.S. dollars or similar liquid assets and mandates annual audits for any stablecoin issuer with a market value exceeding $50 billion.

The bill was welcomed by large banks as it opens the door to more transparent participation in digital asset markets.

Unlike bitcoin and other cryptocurrencies, stablecoins are pegged to traditional currencies, making them more appealing to financial institutions wary of volatility.

Handling Crypto Defaults Remains A Key Hurdle

One of the key technical challenges JPMorgan must address before launching crypto-backed loans is how to manage seized collateral in the event of a borrower default.

As the bank has no plans to directly hold cryptocurrencies, it would need to rely on third-party custodians — likely established players such as Coinbase — to handle and secure the digital assets.

Despite historical reluctance, JPMorgan has had previous involvement in digital assets.

In 2019, it launched JPM Coin, one of the first digital coins issued by a traditional bank, designed for internal transfers between institutional clients.

Now, with the regulatory winds shifting and client demand rising, the bank appears more willing than ever to find a middle ground between crypto’s promise and its perceived risks.