Banks may soon begin crypto-backed lending for digital assets such as Bitcoin (BTC) and Ethereum (ETH).
According to a recent Financial Times report, published on 22 July 2025, JPMorgan Chase is exploring the possibility of lending against its clients’ holdings of crypto assets, starting next year.
If this goes through, JP Morgan Chase would become the largest American bank to endorse crypto. The financial institution, however, has cautioned that its plans are subject to change.
With the ability to use Bitcoin and Ethereum as collateral, crypto-backed lending opens new financial avenues for users. The shift by leading US banks toward these services aligns with the pro-crypto regulatory stance of the Trump administration.
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The bank’s CEO, Jamie Dimon, has previously made known his displeasure with crypto, calling it a fraud. Furthermore, according to a source quoted by the Financial Times, Dimon had once stated his intention to fire any trader trading crypto.
His stance on stablecoins has shifted, however, acknowledging stablecoins as “real” and confirming JPMorgan Chase’s involvement in both deposit tokens and stablecoins. However, he has also questioned its practicality compared to traditional payment systems.
His comments came during an earnings call on 15 July 2025, where he stated that the bank will be engaging with the asset class to “understand it” and “be good at it”
Dimon’s comments coincided with Citigroup’s announcement of its intention to join the stablecoin space as well. Citigroup CEO Jane Fraser said that the bank may roll out a stablecoin to power payment solutions.
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While a more mainstream lending apparatus against crypto is being explored by the bank, it already has provisions to let its clients borrow against crypto. Since June 2025, the bank has allowed select clients to borrow against crypto ETFs. BlackRock’s iShares Bitcoin Trust comes to mind.
Moreover, JPMorgan Chase has stated that it plans to expand access to other funds after the rollout. The offering is targeted towards high-net-worth individuals and is a marked shift in now cryptocurrencies can now influence creditworthiness.
If lending against ETFs is the first phase, then the next major step would logically be the allowance of loans backed by actual digital assets. However, to do so, JPMorgan Chase would need to address technical hurdles, especially the management of crypto collateral in case of default.
Dimon has previously stated that the bank will soon permit its clients to buy Bitcoins, although it won’t provide any custody service. “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin,” Dimon had then said.
The bank’s decision to lend against crypto follows a broader shift in US policy towards crypto, as highlighted by US President Donald Trump’s endorsement of the GENIUS Act, signed last week.
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