JP Morgan Explores Lending Against Crypto Holdings

US banking giant JP Morgan Chase is exploring the possibility of lending against clients' cryptocurrency holdings, marking a significant strategic shift for the nation's largest bank as digital assets gain mainstream acceptance.

The bank could begin offering loans backed by crypto assets including Bitcoin and Ethereum as early as next year, the Financial Times reported Tuesday, citing sources familiar with the matter who cautioned that plans remain subject to change. JP Morgan declined to comment on the initiative.

The potential move represents a dramatic evolution for CEO Jamie Dimon, who famously dismissed bitcoin as a "fraud" in 2017, predicting it would "eventually blow up" and claiming it was only useful for "drug dealers and murderers." Dimon had also threatened to fire any JP Morgan trader caught dealing in cryptocurrency.

However, Dimon has moderated his stance in recent months. "I don't think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin. Go at it," he said in May .

Sources indicate that Dimon's earlier harsh criticism of cryptocurrency had cost the bank potential clients who had either built wealth through digital assets or maintained long-term bullish positions on crypto.

JP Morgan has already begun embracing cryptocurrency through plans to lend against crypto exchange-traded fund holdings. Accepting actual crypto assets as collateral would represent a more aggressive step into the digital asset space.

The bank would be moving ahead of some competitors in this area. Goldman Sachs currently does not accept cryptocurrency as collateral for loans, FT noted.

The timing aligns with a broader warming toward cryptocurrency across the banking sector, driven partly by anticipated regulatory changes under the Trump administration. Morgan Stanley has also been considering crypto trading offerings through its ETrade platform, reflecting the industry's growing appetite for digital asset services.

Congressional action has provided additional momentum, with the House of Representatives passing stablecoin regulation legislation last week—the first major crypto law approved by Congress. Major banks have welcomed the bill as a framework that could facilitate their digital asset business operations.