JPMorgan Chase, the largest U.S. bank by assets, is preparing to roll out a new crypto-forward initiative that will let its trading and wealth management clients use crypto-linked assets, including spot Bitcoin ETFs, as collateral for loans.
According to Bloomberg, the bank is set to begin offering financing options backed by crypto exchange-traded funds within the next few weeks, starting with BlackRock’s iShares Bitcoin Trust. The fund is currently the top-performing U.S. spot Bitcoin ETF, holding $70.1 billion in net assets, as reported by Sosovalue.com.
In a broader shift, JPMorgan will begin factoring clients’ digital asset holdings into their overall net worth assessments. This approach aligns crypto more closely with traditional assets in loan qualification processes.
This marks another bold move by JPMorgan into the crypto space. The bank has been steadily expanding its digital asset footprint since launching its dollar-pegged stablecoin, JPM Coin, in 2020. Most recently, it disclosed exposure to several spot Bitcoin ETFs in its 2024 financial filings.
While JPMorgan CEO Jamie Dimon remains openly skeptical of cryptocurrencies—likening Bitcoin investment to smoking—he acknowledged in May that the bank would soon give clients the ability to purchase the digital asset directly.
“I don’t think you should smoke,”
Dimon said,
“but I defend your right to smoke. I defend your right to buy Bitcoin.”
The announcement comes on the heels of sweeping regulatory shifts under the Trump administration, which has taken a more favourable stance toward crypto. In April, the Federal Reserve rescinded its previous guidance discouraging banks from involvement in crypto and stablecoin activities. Following that, the Office of the Comptroller of the Currency confirmed in May that federally chartered banks are now authorized to custody crypto assets on behalf of clients.
JPMorgan’s upcoming crypto-collateral loan service could be a bellwether for how traditional finance is adapting to the evolving digital asset landscape, particularly as regulatory winds continue to shift in favour of institutional crypto adoption.
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