JPMorgan Eyes Accepting Bitcoin, Ethereum as Loan Collateral

Highlights:

• JPMorgan considers crypto-backed loans using Bitcoin and Ethereum as possible collateral.
• The bank may partner with custodians since it doesn’t hold crypto on its balance sheet. 
• Other big banks remain hesitant, citing AML risks and crypto’s volatile reputation.

As per a Tuesday report from the Financial Times, U.S. banking giant JPMorgan is exploring the idea of letting its clients borrow money using Bitcoin (BTC) and Ethereum (ETH) as collateral. However, people familiar with the matter said these plans are still under discussion and may change later.

Advertisement

According to FT, JPMorgan is exploring offering loans backed by customer-held crypto assets like Bitcoin and Ethereum, possibly starting as early as next year. If implemented, it would mark a major shift for CEO Jamie Dimon, who once called Bitcoin a “fraud” and predicted it…

— Wu Blockchain (@WuBlockchain) July 22, 2025

Big Banks Slowly Embrace Crypto Amid Regulatory Shift

If this plan moves forward, JPMorgan would become one of the biggest U.S. banks to include crypto in regular banking services. JPMorgan CEO Jamie Dimon has been a strong critic of Bitcoin in the past, even calling it a “fraud.” But recently, he said that stablecoins are “real” and confirmed that the bank will be involved in both deposit stablecoins and tokens. JPMorgan’s move to offer direct loans against cryptocurrencies comes just days after a major victory for crypto in the U.S. Last Friday, President Donald Trump signed the GENIUS Act into law at the White House, officially introducing clear regulations for stablecoins.

Despite growing interest, crypto-backed lending faces major hurdles. Regulators have warned that digital assets are prone to misuse for illicit transactions, heightening scrutiny around anti-money laundering (AML) compliance. JPMorgan would also have to create ways to handle or take control of crypto if a borrower defaults. The bank doesn’t keep cryptocurrencies on its balance sheet right now. So, it would likely team up with a third-party custodian to hold the crypto collateral. Platforms like Coinbase already provide these types of custody services.

With changing sentiment in Washington, more banks are beginning to show interest in crypto. The White House is expected to unveil its Crypto Policy report on July 22. Many expect the Trump administration to bring easier rules than President Biden’s stricter approach. Morgan Stanley may soon allow crypto trading on its E*Trade platform. JPMorgan has already taken steps by planning to offer loans backed by crypto ETF holdings.

🚨 JPMorgan Plans to Offer Clients Financing Against Crypto ETFs pic.twitter.com/QpausRiHxM

— matthew sigel, recovering CFA (@matthew_sigel) June 4, 2025

Tyler Winklevoss Accuses JPMorgan of Trying to Crush Crypto and Fintech

As JPMorgan moves deeper into crypto with its new loan plans backed by crypto, it’s also facing strong backlash. Gemini co-founder Tyler Winklevoss accused the bank of trying to shut out fintech and crypto firms. In a detailed X thread, he said JPMorgan wants to block free access to banking data through apps like Plaid and replace it with high fees. He warned this move could destroy fintechs that connect users to crypto platforms like Gemini, Coinbase, and Kraken for easy fiat-to-crypto transfers.

Winklevoss’ criticism came days after Bloomberg revealed JPMorgan’s plans to charge usage-based fees for API calls that send customer data to third-party apps. Reuters later confirmed the move and shared the bank’s response. JPMorgan said it built a secure system to protect customer data and is working with others to improve the infrastructure for user safety.

JPMorgan and the banksters are trying to kill fintech and crypto companies. They want to take away your right to access your banking data for FREE via-third party apps like @Plaid and instead charge you and fintechs exorbitant fees to access YOUR DATA. This will bankrupt fintechs… pic.twitter.com/LpDVGXVrKq

— Tyler Winklevoss (@tyler) July 20, 2025

Advertisement