JPMorgan Explores Bitcoin-Backed Loans in Major Policy Shift

BUSINESS NEWS: JPMorgan Chase is examining whether to offer loans secured directly by clients’ cryptocurrency holdings, the Financial Times reported, citing people familiar with the discussions.

The initiative would allow customers to pledge assets such as Bitcoin and Ethereum as collateral and could begin as soon as next year, though the plans remain preliminary.

The change would expand the bank’s existing practice of accepting crypto exchange-traded fund shares as collateral and would mark a significant reversal for Chief Executive Officer Jamie Dimon, who in 2017 dismissed Bitcoin as a fraud.

Dimon has since moderated his stance, saying in May that he supports customers’ right to buy the token.

Industry analysts say the proposal highlights Wall Street’s growing comfort with digital assets after Washington’s recent GENIUS Act and the first congressional framework for stablecoins.

Even so, Basel III rules attach a 1,250% risk weighting to direct crypto exposure, meaning JPMorgan would likely rely on external custodians—such as Coinbase—to hold any seized collateral.

Rival banks are watching the space: Morgan Stanley is considering crypto trading on its E*Trade platform, while Goldman Sachs still rejects cryptocurrencies as loan collateral.

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