Traditional finance meets DeFi? JPMorgan may soon offer loans backed by BTC and ETH.
In a surprising pivot from its historically cautious stance on digital assets, JPMorgan is reportedly preparing to launch crypto-backed loans as early as 2026. According to sources cited by the Financial Times, the Wall Street giant plans to allow institutional clients to borrow cash using major cryptocurrencies—like Bitcoin (BTC)$BTC
and Ethereum (ETH)$ETH
—as collateral.
This would mark a significant evolution in the bank’s crypto strategy. Currently, JPMorgan permits clients to borrow against crypto-focused exchange-traded funds (ETFs), such as BlackRock’s iShares Bitcoin Trust (IBIT). But direct crypto collateralization takes that one step further.
The move comes shortly after CEO Jamie Dimon expressed openness to stablecoin adoption—a notable shift from his infamous 2017 remark calling Bitcoin “a fraud.” Under a potentially pro-crypto Trump administration, Wall Street appears to be fast-tracking digital asset integration.
Analysts suggest the new lending product could attract hedge funds, family offices, and high-net-worth individuals seeking liquidity without offloading long-term crypto positions. With BTC hovering near $117,000 and institutional appetite growing, JPMorgan’s timing could align with the next wave of mainstream crypto adoption.
Bottom Line: JPMorgan’s deepening crypto commitment signals Wall Street’s growing acceptance of digital assets—not just as speculative instruments, but as legitimate collateral in traditional finance.#ETHBreaks3700 #StablecoinLaw #BTCvsETH #loans
