Advertise
- Rizwan AnsariRizwan Ansari
- Reviewed by:
Sohrab KhawasSohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Jul 22, 2025 06:33 UTC
-
Banking Giant JPMorgan Eyes Bitcoin & Ethereum‑Backed Loans
JPMorgan plans Bitcoin and Ethereum-backed loans, signaling a major shift in traditional banking.
CEO Jamie Dimon, once anti-Bitcoin, now supports stablecoins and regulated digital asset initiatives.
JPMorgan projects stablecoin market could hit $500 billion by 2028, rejecting higher forecasts.
JPMorgan Chase is exploring a plan to let select clients borrow cash against their Bitcoin and Ethereum holdings, a move that would mark a major turn for the world’s biggest bank and its long‑skeptical CEO, Jamie Dimon. The effort comes as U.S. rules around crypto are starting to clear up and client demand grows louder.
The bank already lets some wealthy customers borrow against crypto exchange‑traded funds; tapping actual coins could be next.
The question now, how soon, and under what guardrails?
From ‘Fraud’ to Collateral: Dimon’s Changing Tune
According to people familiar with internal discussions, JPMorgan is studying how to extend secured loans where BTC or ETH held by the client serves as collateral, possibly launching as early as next year. Plans could still change, but the direction is clear: clients want to unlock liquidity without selling their crypto.
Years ago, CEO Jamie Dimon called Bitcoin a “fraud” and even said he’d fire any trader who dared to touch crypto. Now, his change in tone has surprised many, he recently admitted that stablecoins are “real” and confirmed that JPMorgan will work with deposit tokens and regulated digital assets.
Some insiders say the plan could roll out as soon as next year, but much depends on regulatory green lights.
From ETF Collateral to Actual Coins
The bank already took a first step. In June, it began letting certain high‑net‑worth clients borrow against crypto ETFs starting with BlackRock’s iShares Bitcoin Trust, and expects to add more funds. Lending against spot Bitcoin and Ether would go further.
That means solving big nuts‑and‑bolts questions: How is collateral valued in fast markets? Who controls the keys? What happens if a borrower defaults and the bank must seize and liquidate crypto it never custodied?
Wall Street Wants In (Carefully)
Momentum picked up after the GENIUS Act, new U.S. stablecoin rules, cleared Congress and were signed into law. With cleaner guardrails, legacy firms like JPMorgan feel safer building real products.
Other giants are circling. Morgan Stanley is weighing crypto trading through E*Trade. Institutional surveys show most big investors plan to increase digital‑asset exposure this year, not just in Bitcoin and Ether but also leading altcoins and regulated stablecoins.
Still, JPMorgan is keeping its feet on the ground. It predicts the stablecoin market will reach $500 billion by 2028 but dismisses trillion-dollar estimates as wishful thinking.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
Client demand and clearer U.S. crypto regulations are prompting JPMorgan to consider crypto-backed loans.
The plan could roll out as early as next year, depending on regulatory approvals and internal preparations.
Risks include collateral valuation in volatile markets, custody issues, and managing defaults with crypto assets.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Yes 
No 
