JPMorgan (JPM) is now exploring crypto-backed loans, a move that would have seemed unthinkable a few years ago under CEO Jamie Dimon’s famously hostile stance toward digital assets. According to a report from the Financial Times, the banking giant is evaluating whether to allow clients to borrow against holdings like Bitcoin and Ether. The plan could materialize by 2026.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The idea marks a potential turning point. While JPMorgan has been dabbling around the edges of blockchain infrastructure and tokenization for years, direct exposure to crypto as collateral pushes the bank closer to the digital asset economy it once dismissed. If executed, it would also place JPMorgan in direct competition with crypto-native lenders and firms like Coinbase (COIN), which already offer asset-backed borrowing.
Dimon Softens after Years of Dismissing Crypto
The shift is striking, especially given Dimon’s long track record of dismissing crypto. In 2017, he called Bitcoin a “fraud” and said he would fire any JPMorgan trader caught touching it. In 2018, he doubled down, calling crypto a “scam.” Even in 2022, after much of Wall Street had opened to blockchain technology, Dimon was still calling digital assets “decentralized Ponzi schemes.”
But the message began to change earlier this year. In May, Dimon said he supports clients’ rights to buy Bitcoin, even though he still prefers not to custody it directly. He compared it to smoking, something he doesn’t endorse personally but believes others should be free to do. That shift, subtle as it may sound, cracked the door open for a broader institutional reset.
Stablecoins Pull JPMorgan Further into Crypto
JPMorgan’s recent interest in crypto-backed loans comes just as the bank is publicly exploring stablecoins. During a July earnings call, Dimon said the firm intends to be involved in the stablecoin market, not just to understand it, but to be good at it. The comments came the same week Citigroup (C) confirmed it was also weighing its own stablecoin initiative.
Past Remarks May Have Cost JPMorgan Client Relationships
According to FT, some inside the firm acknowledge that Dimon’s earlier anti-crypto comments may have alienated clients. The bank lost ground with investors and entrepreneurs who built their wealth in the crypto sector and were looking for institutional partners that understood the space. Now that crypto is maturing and seeing a second wave of infrastructure growth, JPMorgan appears ready to repair that bridge.
Crypto lending offers one way back in. It’s a business with defined margins, collateralization models, and rising institutional demand. And with big-name investors now holding large amounts of digital assets, often idle, there’s a growing appetite for capital efficiency. JPMorgan seems to be positioning itself to provide that.
Traditional Finance May Soon Mirror Crypto Structure
If JPMorgan starts lending against Bitcoin or Ether, it will be stepping directly into a sector that has so far been dominated by crypto-native firms. These services are already routine in digital finance. From lending desks to decentralized collateral vaults, the model is tested. What Wall Street offers is trust, brand power, and compliance; three things traditional institutions still crave.
This is a strategic recalibration. By 2026, crypto-backed lending could become standard for institutional desks. If JPMorgan moves first, it may regain some of the crypto clientele it once shunned.
Investors interested in crypto should stay informed by tracking the prices of their favorite cryptocurrencies and using technical analysis tools on the TipRanks Cryptocurrency Center. Click on the image below to find out more.
