- JPMorgan will give clients loans backed by Bitcoin and Ethereum starting next year.
- The bank will use Coinbase to hold the crypto safely instead of holding it directly.
- U.S. law allows stablecoin lending, which helps banks like JPMorgan offer crypto credit.
JPMorgan Chase & Co. is planning to offer loans backed by cryptocurrency holdings such as Bitcoin and Ethereum as early as 2026. The development comes amid rising institutional interest in crypto credit markets and follows new regulatory clarity from the recently signed GENIUS Act. Despite Basel III’s 1,250% risk weight requirement for such loans, JPMorgan intends to move forward, aiming to tap into the wealth of crypto-native clients.
Institutional Finance Meets Crypto Infrastructure
The Financial Times reported that JPMorgan is considering launching crypto-backed loans, citing sources familiar with the matter. These loans would allow clients to borrow using digital assets like Bitcoin and Ethereum as collateral.
This shift is occurring in tandem with similar moves by other U.S. banking giants. Bank of America and Citibank are actively developing stablecoin products, and this aligns with emerging crypto regulatory frameworks in Washington.
President Donald Trump recently signed the GENIUS Act into law. The legislation creates a federal structure for stablecoins, which mandates full U.S. dollar backing and yearly audits for issuers with over $50 billion in market cap. It also sets guidelines for foreign issuers, giving banks a clearer path to participate in digital asset services.
JPMorgan’s involvement could encourage other institutions to enter the market. Though the bank will not directly hold client crypto assets, it will depend heavily on third-party custodians like Coinbase to reduce risk exposure.
Dimon’s Shift and Regulatory Tailwinds
CEO Jamie Dimon has long been a critic of Bitcoin. In 2017, he labeled it a “fraud” and warned investors of speculative behavior. As recently as May, he told shareholders, “We’re going to allow you to buy it; we’re not going to custody it.” Despite past opposition, Dimon has adopted a more nuanced stance in recent months. Speaking to investors, he acknowledged the public’s right to own digital assets and said the bank would engage in areas like stablecoins.
JPMorgan declined to comment to the Financial Times regarding the report. Meanwhile, regulatory clarity continues to improve. Guidance from the Federal Reserve and the Office of the Comptroller of the Currency has shown clearly how banks can offer crypto-backed loans without violating anti-money laundering or KYC rules.
JPMorgan already provides lending against crypto-linked instruments like ETFs, making this a natural progression in its crypto strategy. Targeting High-Net-Worth and Crypto-Savvy Clients, the bank is aiming to serve individuals and institutions that desire to keep their digital assets free from sale. With the increase in demand for integrated financial products comes JPMorgan, trying to create a bridge between legacy banking and on-chain finance. Through third-party custodians, they can manage collateralizers themselves while remaining off the balance sheet.
This structure reduces credit risk exposure and facilitates the continuous generation of institutional-grade services. It also aligns well with restrictions such as Basel III, which assigns a risk weightage of 1,250% to unhedged crypto loans—that is, it lays dollar-for-dollar capital requirements. Basel standards present a challenge, but JPMorgan has shown the disposition to continue trying new financial structures that acknowledge risk and embrace digital innovation.
Related: JPMorgan Pilots On-Chain Dollar Token JPMD on Base Chain
JPMorgan Stock Ends Slightly Lower
As of press time, JPMorgan Chase (NYSE: JPM) closed at $290.97, marking a 0.10% dip from the previous close of $291.27. According to Google Finance, the stock traded between $290.58 and $294.18 during the session.
After hours, it gained $0.50, or 0.17%, reaching $291.47. JPMorgan holds a market cap of $808.63 billion, a P/E ratio of 14.93, and offers a 1.92% dividend yield. The stock’s 52-week range spans from $190.90 to $296.40. Its average daily volume stands at 9.44 million shares, reflecting steady investor interest.
