Wall Street Giant JPMorgan To Let Clients Borrow Money Against Their Bitcoin And Ethereum Holdings

American banking behemoth JPMorgan Chase is reportedly exploring a major expansion into crypto-backed lending and is mulling offering loans directly secured by clients’ crypto holdings, marking a major U-turn for the bank, whose CEO once dismissed Bitcoin as a “fraud.”

Crypto-Backed Loans

The Financial Times reported on Tuesday, citing anonymous individuals privy to the matter, that the bank is considering allowing clients to borrow money against crypto assets such as Bitcoin and Ether as early as next year.

Although traditionally cautious, JPMorgan has reportedly already taken preliminary moves in the crypto sector, including giving clients loans against crypto exchange-traded funds (ETFs) like BlackRock’s iShares Bitcoin Trust (IBIT).

The bank’s acceptance of direct crypto-backed lending could be a trailblazing move that spurs other Wall Street banks to follow suit, potentially unlocking billions in new credit markets while establishing crypto as acceptable collateral for traditional loans.