JPMorgan considers lending against clients’ crypto assets

JPMorgan Chase is exploring a move to lend against clients’ cryptocurrency holdings, signaling a significant step toward the mainstream adoption of digital assets by traditional financial institutions.

The potential policy shift would mark a notable turn for JPMorgan CEO Jamie Dimon, who once denounced bitcoin as a “fraud” that would “eventually blow up” and claimed it was mainly used by “drug dealers and murderers.” In 2017, Dimon even said he would fire any trader at JPMorgan who dealt in cryptocurrencies, the Financial Times reports.

However, according to FT sources familiar with the matter, JPMorgan could begin lending directly against cryptocurrencies such as bitcoin and ethereum as early as next year. The plans are not yet final and remain subject to change. The bank declined to comment on the matter.

The move would reflect a broader trend of large, regulated financial institutions warming up to crypto assets. JPMorgan has already taken initial steps, including plans to lend against crypto exchange-traded fund (ETF) holdings. A shift to lending against the assets themselves would go further than many peers—Goldman Sachs, for instance, does not currently accept crypto as collateral.

Some insiders told the Financial Times that Dimon’s earlier statements on bitcoin had alienated clients who either made their wealth through cryptocurrencies or remained long-term believers in digital assets. In recent remarks, Dimon softened his stance, saying in May, “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin. Go at it.”

The shifting stance from JPMorgan comes amid a changing regulatory climate in Washington. With the prospect of a second Trump administration favoring lighter regulation than the current Biden administration, more banks are reconsidering their positions on digital assets. Morgan Stanley, for instance, is reportedly weighing crypto trading options through its E*Trade platform.

Meanwhile, the U.S. House of Representatives last week passed a bill to regulate stablecoins—marking the first major crypto legislation approved by Congress. Unlike decentralized cryptocurrencies such as bitcoin, stablecoins are pegged to assets like the U.S. dollar and are seen as more bank-friendly.

Still, challenges remain. Banks continue to view crypto as a potential vector for money laundering and illicit finance. Any move to lend against digital assets would require solving technical issues such as how to seize and manage crypto collateral from defaulting borrowers.

JPMorgan does not currently hold cryptocurrencies on its balance sheet. Instead, it is expected to partner with a third-party custodian—such as Coinbase—that would hold the crypto assets on its behalf.

Despite its historical skepticism toward bitcoin, JPMorgan has been active in digital asset innovation. In 2019, it launched JPM Coin, one of the first digital coins backed by a major bank.

By Sabina Mammadli