JPMorgan Poised to Roll Out Loans Backed by Crypto in 2026

A major American bank is preparing for a bold new era in digital finance. JPMorgan Chase is looking to launch loans backed directly by clients’ Bitcoin and Ethereum as early as 2026, according to insiders familiar with the evolving plans.

This policy marks a dramatic turn for both the firm and CEO Jamie Dimon, who was once among the most outspoken Wall Street skeptics of cryptocurrency.

From Doubt to Digital Asset Lending

JPMorgan’s move comes amid a shifting regulatory landscape and growing institutional acceptance. For years, Jamie Dimon dismissed cryptocurrencies as a risky sideshow, famously calling Bitcoin a “fraud.” As digital assets gained legitimacy and clarity, institutional demand has drawn major banks back into the sector. Dimon, while still warning of crypto’s dangers, has moderated his stance, prioritizing clients’ rights to invest as they choose.

Did you know?
JPMorgan began allowing select clients to borrow against Bitcoin ETFs in 2024, foreshadowing its move to direct crypto-backed lending.

Early Moves Set the Stage

By mid-2024, JPMorgan allowed high-net-worth clients to borrow against crypto exchange-traded funds, such as BlackRock’s iShares Bitcoin Trust. The bank treats these ETF holdings much like stocks or artwork for collateral purposes. Direct crypto-backed loans, however, raise novel risks around asset custody, volatility, and rapid liquidation in times of default.

Institutional Adoption Accelerates

Rival banks are not sitting still. Bank of America and Citigroup are both developing stablecoin products. Morgan Stanley is exploring crypto trading services, and Charles Schwab recently announced plans to enable trading for Bitcoin and Ethereum on its platform. These developments signal that crypto-backed lending could quickly become an industry standard.

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Regulatory Winds at JPMorgan’s Back

The timing of JPMorgan’s push is deliberate. Recent federal actions, including the signing of the GENIUS Act, have established robust guidelines for stablecoins and digital assets. These developments offer confidence for large institutions to proceed with new financial offerings tied directly to cryptocurrencies.

How the Lending Will Work

JPMorgan will not directly custody clients’ crypto holdings for these loans. Instead, it is expected to partner with regulated third-party custodians who specialize in the security and storage of digital assets. The bank’s lending model will integrate digital assets as direct collateral, expanding options for investors seeking liquidity while holding onto long-term crypto positions.

Market Opportunity and Forward Momentum

Industry analysts see the potential for massive growth. Cryptolending is estimated to represent up to $4.3 trillion in future opportunities. Digitally native investors are seeking alternatives to traditional finance, and mainstream lenders are eager to meet the demand in a compliant, secure manner.

Risks and Reservations Remain

Jamie Dimon has not abandoned his reservations about crypto, pointing to the inherent risks of leverage, market swings, and illicit finance. Yet, JPMorgan’s evolving approach signals a new acceptance of digital assets as part of mainstream financial infrastructure. With the path to launch now taking shape, the industry is watching to see how risk management, custody, and regulation will evolve in tandem.

The coming year could prove pivotal, as JPMorgan and its peers move from cautious observers to active service providers in the world of crypto-backed lending. The question now is how quickly the rest of the banking sector will follow.