In a potential shift in the U.S. banking sector’s stance toward digital assets, JPMorgan Chase is reportedly exploring the launch of crypto-backed loans, with early discussions focused on Bitcoin (BTC) and Ether (ETH) as collateral. The move aligns with growing institutional momentum around stablecoins and tokenized finance, as reported by the Financial Times on Tuesday.
Strategic Shift Toward Digital Assets
The initiative could position JPMorgan as the first major U.S. bank to lend directly against crypto holdings by 2026, signaling a turning point in the bank’s long-criticized relationship with digital assets. While plans are still evolving, insiders cited by FT said the effort reflects mounting demand from clients and competitive pressure from rivals like Citigroup, which recently disclosed its own plans to enter the stablecoin sector.
“We want to understand this space and be good at it,” CEO Jamie Dimon said on a July 15 earnings call, addressing the bank’s stance on stablecoins.
Dimon’s Crypto U-Turn
This marks a remarkable reversal for Dimon, who once called Bitcoin a “fraud” in 2017 and later dismissed cryptocurrencies as “decentralized Ponzi schemes” in 2022. His long-standing skepticism, according to FT sources, reportedly alienated clients who had made fortunes in crypto or were long-term believers in the technology.
However, Dimon’s recent tone has softened considerably. In May, he said JPMorgan clients could purchase Bitcoin, though the bank would not offer direct custody. “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin,” Dimon said.
Stablecoin Push Gathers Momentum
The bank’s crypto strategy now appears to revolve around regulated stablecoins and the infrastructure supporting them. JPMorgan already runs its JPM Coin, a blockchain-based dollar settlement system for wholesale clients. With more firms entering the tokenized dollar race, the pressure is on to innovate or risk losing relevance in the next-gen finance landscape.
Outlook
By considering crypto-backed lending and stablecoin participation, JPMorgan is no longer on the sidelines — it’s preparing to compete in the tokenized future of banking. If realized, this would mark a pivotal moment for Wall Street’s integration with crypto finance, transforming how traditional institutions view digital collateral and programmable money.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.