JPMorgan Eyes Crypto-Backed Loans Despite Dimon’s Skepticism

JPMorgan Chase (JPM.N) is reportedly considering launching a lending service backed by clients’ cryptocurrency holdings, including bitcoin and ethereum, as early as next year, according to individuals familiar with the matter. This potential move would mark a significant step for the banking giant into the digital asset space, aligning it with a broader industry trend toward integrating crypto into traditional financial services.

The development comes amid a wider push among major U.S. financial institutions to prepare for what appears to be a more crypto-friendly regulatory environment in Washington. Notably, Bank of America (BAC.N) and Citibank (C.N) are currently working on their own stablecoin initiatives as part of this ongoing shift.

JPMorgan Chase has so far declined to issue any public comment on the matter. The bank also did not respond to an after-hours request for comment from Reuters.

CEO Jamie Dimon, long known for his critical stance on bitcoin, has nonetheless acknowledged the growing relevance of digital assets. Despite maintaining a cautious distance, Dimon recently confirmed that JPMorgan intends to participate in the stablecoin space. “We’re going to allow you to buy it, we’re not going to custody it,” he said, reiterating the bank’s policy of permitting crypto-related activity without endorsing it outright.

Speaking to investors in May, Dimon doubled down on his distrust of bitcoin and its ecosystem. “I’m not a fan,” he stated, pointing to risks such as excessive leverage, criminal misuse, and the potential for money laundering within the cryptocurrency system. He dismissed the notion of JPMorgan getting into custody services—storing digital assets on behalf of clients—or expanding crypto offerings, even if regulatory conditions become more favorable.

Dimon has likened JPMorgan’s approach to tolerating behavior he personally opposes, drawing a line between facilitating access for clients and offering full-scale crypto services under the bank’s umbrella.

By fLEXI tEAM