- JPMorgan plans crypto-backed loans using Bitcoin and Ethereum, showing how far Wall Street has shifted toward digital assets.
- Jamie Dimon now backs stablecoins and blockchain, a big change from his earlier Bitcoin skepticism as crypto gains ground in banking.
- The GENIUS Act gives clear rules for stablecoins, pushing major banks like JPMorgan, Citi, and Western Union deeper into crypto services.
JPMorgan Chase is getting ready to introduce a cryptocurrency-backed loan product as early as 2026. The bank is investigating secured lending with Ethereum and Bitcoin as collateral, according to sources the Financial Times cited.
This is the most audacious crypto move JPMorgan has ever made. The decision aligns with a growing trend on Wall Street, where large institutions now embrace regulated crypto products as part of their financial services.
In June, JPMorgan quietly began allowing wealth and trading clients to use BlackRock’s iShares Bitcoin Trust (IBIT) as loan collateral. IBIT is currently the largest U.S. spot Bitcoin ETF, managing over $70.1 billion in assets.
Hence, the move laid the foundation for the bank’s next step—accepting actual cryptocurrencies like Bitcoin and Ethereum as collateral. Moreover, the bank will likely use third-party custodians to hold the assets and reduce associated risks.
Dimon’s Shift and Stablecoin Push
Given CEO Jamie Dimon’s prior criticism of Bitcoin, this change is particularly noticeable. At one point, he labeled the asset a scam and cautioned about its dangers. Dimon recently changed his mind, though, and stated that customers ought to have access to cryptocurrency. He is still dubious about the ecosystem’s abuse, but he is now in favor of investigating stablecoin and blockchain technology.
Additionally, JPMorgan is stepping up its stablecoin initiatives. Dimon affirmed that the bank will continue to work on creating regulated stablecoins as well as its deposit coin. This is in line with larger actions taken by big American banks like Bank of America and Citigroup, who are also getting involved with the stablecoin.
Regulatory Winds Shift in Favor of Crypto
The timing of this move comes after the U.S. passed the GENIUS Act, which offers clear guidelines on stablecoin usage and issuance. Consequently, this has encouraged more banks to get involved in crypto.
Western Union, Morgan Stanley, and others now see stablecoins as useful tools for payments and remittances. Traditional finance is finally embracing crypto not as a threat—but as an opportunity.
