JPMorgan Chase Set to Launch Crypto-Backed Lending Using BTC and Ethereum Beginning Next Year

Banks might soon initiate lending backed by cryptocurrencies for digital assets like Bitcoin (BTC) and Ethereum (ETH).

A recent report from the Financial Times, released on 22 July 2025, indicates that JPMorgan Chase is considering the option of lending using its clients’ digital currency holdings beginning next year.

If implemented, JP Morgan Chase would become the largest U.S. bank to support crypto. However, the financial institution has warned that its plans could evolve.

By utilizing Bitcoin and Ethereum as collateral, crypto-backed lending unveils new financial opportunities for users. The move by prominent U.S. banks toward these services corresponds with the pro-crypto regulatory approach of the Trump administration.

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BREAKING: JP Morgan, managing $4.3T in assets, is now looking into crypto-backed loans for clients.

Indeed, $BTC and $ETH as collateral.

The same financial players that scoffed in 2017? They are now positioning themselves. pic.twitter.com/LIM7U1GmfJ

— Wise Advice (@wiseadvicesumit) July 22, 2025

The CEO of the bank, Jamie Dimon, has previously expressed his disapproval of cryptocurrencies, labeling them a fraud. Additionally, a source cited by the Financial Times mentioned that Dimon once claimed he would terminate any trader involved in crypto.

However, his perspective on stablecoins has changed, recognizing them as “real” and affirming JPMorgan Chase’s involvement with both deposit tokens and stablecoins. Still, he has questioned their practicality in comparison to conventional payment systems.

His remarks were made during an earnings call on 15 July 2025, where he stated that the bank will engage with this asset class to “understand it” and “excel at it.”

Dimon’s remarks coincided with Citigroup’s update that it plans to enter the stablecoin sector as well. Citigroup CEO Jane Fraser indicated that the bank may introduce a stablecoin to facilitate payment solutions.

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JPMorgan Already Facilitates Crypto-Backed Lending For Selected Clients

As the bank investigates a more mainstream lending framework against cryptocurrencies, it already provides options for clients to borrow against crypto. Since June 2025, the bank has permitted select clients to borrow against crypto ETFs, notably BlackRock’s iShares BTC Trust.

Additionally, JPMorgan Chase has announced plans to broaden access to other funds post-rollout. The offering is aimed at affluent individuals and marks a significant change in how cryptocurrencies can influence credit assessment.

If lending against ETFs represents the initial stage, then the logical next step would be allowing loans backed by actual digital assets. However, for this to occur, JPMorgan Chase would need to tackle technical challenges, particularly the management of crypto collateral in the event of default.

Dimon has previously stated that the bank will soon enable clients to purchase Bitcoins, though it won’t offer any custody service. “I might not agree with smoking, but I advocate your right to smoke. I stand by your right to acquire Bitcoin,” Dimon remarked.

The decision by the bank to lend against cryptocurrencies comes in line with a broader trend in U.S. policy towards crypto, emphasized by U.S. President Donald Trump’s endorsement of the GENIUS Act, signed last week.

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The article JPMorgan Chase To Start Crypto-Backed Lending Against BTC And Ethereum Starting Next Year originally appeared on 99Bitcoins.