JPMorgan Eyes Crypto-backed Loans Amid Favorable U.S. Policy Shift

JPMorgan is preparing to deepen its involvement in the digital asset space by offering crypto-backed loans, according to a new report from the Financial Times.

The bank is exploring lending products secured directly by client-held cryptocurrencies such as Bitcoin and Ether—a move that would significantly expand its crypto services beyond ETF collateralization.

From ETFs to direct crypto-collateral lending

While JPMorgan currently allows borrowing against crypto exchange-traded funds like BlackRock’s iShares Bitcoin Trust (IBIT), this next step would involve using the underlying digital assets themselves as loan collateral. The expansion, if finalized, could launch as early as next year, marking a new phase in the bank’s digital asset strategy under CEO Jamie Dimon.

This comes as regulatory clarity around cryptocurrencies improves under the Trump administration. Recent developments, including the passage of the GENIUS Act, have bolstered confidence in digital asset infrastructure—providing a more stable environment for traditional financial institutions to engage directly with crypto markets.

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Institutions adapt to crypto-native capital markets

JPMorgan’s planned entry into crypto-collateralized lending mirrors a growing institutional trend: adapting legacy finance tools for decentralized assets. While still in early stages, the bank’s potential product launch would put it in direct competition with crypto-native lenders and custody firms, but with the added regulatory credibility of a global banking leader.

If launched, these crypto-backed loans would allow clients to leverage their Bitcoin and Ethereum holdings without liquidating them—opening up new opportunities for liquidity, yield strategies, and capital efficiency across both institutional and high-net-worth segments.

This initiative signals JPMorgan’s broader commitment to digital asset integration, just as demand for regulated crypto-financial products accelerates in the U.S. and abroad.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.