JPMorgan Chase is planning a shift that would let its clients use crypto—such as Bitcoin and Ethereum—as collateral for loans as soon as next year. Currently, the bank already allows borrowing against crypto exchange-traded funds (ETFs), including BlackRock’s iShares Bitcoin Trust. This move reflects a growing trend among large U.S. banks updating traditional lending practices to include digital assets, bolstered by a more favourable regulatory climate around cryptocurrencies. JPMorgan CEO Jamie Dimon, once famously critical of Bitcoin, has softened his stance—saying clients can buy and use crypto, though JPMorgan won’t hold it directly as on‑balance‑sheet assets. The bank will likely rely on third-party custodians like Coinbase to manage crypto collateral, to address concerns over seizure and custody if clients default.
