Breaking: JPMorgan Explores Bitcoin, Ethereum-backed Loans in Jamie Dimon’s 180-degree Shift
Highlights
- JPMorgan to offer loans against Bitcoin and Ethereum holdings, in major strategic pivot.
- The bank’s move follows the implementation of the Market Structure (CLARITY) Act, which provides a regulatory framework for digital assets.
- With the U.S. government expected to ease crypto regulations, banking institutions are expanding into digital asset services.
- JPMorgan is also exploring stablecoin initiatives to compete with Tether, Circle.
JPMorgan’s Bitcoin and Ethereum-backed Loans to Go Live Soon
The latest report from Financial Times noted that the largest global bank could start offering Bitcoin and Ethereum-backed loans as early as 2026. However, sources familiar with the matter also stated that plans of lending against crypto assets are subject to change. This pivot comes soon after the Market Structure Act aka CLARITY Act came into effect last week, thereby introducing clear crypto regulations.
Further, top crypto assets are gaining familiarity among traditional banking and financial institutions, with top asset managers like BlackRock, Fidelity introducing key investment products.
A source familiar with the matter said Dimon’s early remarks on Bitcoin, including his threat to fire any trader dealing in it, resulted in the loss of business by alienating potential clients. As institutional conviction in crypto grows, JPMorgan has no option but to pivot. Much recently, banking chief Jamie Dimon has also softened his tone on crypto. In May, Dimon said:
“I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin. Go at it”.
Embracing Digital Assets Amid White House Shift
As sentiment in Washington shifts, more banks are warming up to crypto. The White House will release its Crypto Policy report on July 22, with expectations from the Trump administration to bring lighter regulatory oversight compared to President Biden’s approach.
Morgan Stanley is reportedly considering offering crypto trading via its E*Trade platform. JPMorgan has already begun making inroads into the sector, with plans to offer lending against holdings in crypto exchange-traded funds (ETFs).
Furthermore, with GENIUS stablecoin act in place, the Jamie Dimon-led bank is exploring stablecoin offerings to compete with existing players like Tether, Circle. Taking the next step, accepting crypto assets themselves as collateral, would mark a deeper commitment.
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