JPMorgan opens access to crypto beyond a case-by-case basis
JPMorgan will begin allowing its trading and wealth clients to borrow money using crypto-linked assets as collateral, according to Bloomberg. The plan will begin in the coming weeks, starting with loans backed by BlackRock's iShares Bitcoin Trust.
The bank will also begin including crypto assets in some client net worth calculations, placing Bitcoin and other digital assets in the same category as stocks, cars, and artwork.
This matters because it affects how much money clients can borrow from the bank. This new model will apply to all of JPMorgan's high-net-worth clients globally, including retail and ultra-high-net-worth clients.
JPMorgan opens access to crypto beyond a case-by-case basis
Prior to this change, JPMorgan only accepted crypto ETFs as loan collateral under certain conditions. With this new system, the bank is expanding, starting with BlackRock's Bitcoin ETF and later expanding to other exchange-traded crypto products.
These changes come at a time when demand for access to cryptocurrencies is increasing among customers, and the federal stance on digital assets is becoming more relaxed.
Jamie Dimon, the bank's CEO, has remained critical of Bitcoin. At an investor day in May, he said, "I don't think we should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin, go ahead."
He made it even clearer earlier this year at the 2024 World Economic Forum in Davos, Switzerland. “Bitcoin is useless. I call it the companion stone,” Jamie said. “This is the last time I’m talking about this with CNBC, so help me God.”
Despite this opinion, the bank has been working with crypto platforms for years. It uses blockchain technology for its internal services and counts Coinbase among its clients. These new credit policies show that, while Jamie isn't a fan of Bitcoin, JPMorgan has no problem profiting from it as long as there's customer demand.
Trump administration lifts barriers for Wall Street
Trump's return to the White House in January 2025 has changed the way US regulators treat cryptocurrencies. The FDIC and the Office of the Comptroller of the Currency have abandoned previous anti-crypto policies. Even the Federal Reserve has backed down, though not completely.
A 2023 advisory still exists that restricts certain crypto-related banking activities. But thanks to the repeal of SAB 121, banks are now allowed to hold crypto, something that was previously prohibited.
Since these regulatory repeals, cryptocurrencies have exploded. Bitcoin reached a new all-time high in May, reaching $111,980, just a few months after Trump's election victory in November 2024. Bitcoin-linked ETFs, launched in the United States in January 2024, now manage approximately $128 billion. This is one of the fastest product growth rates Wall Street has seen.
Trump has actively pushed crypto policies since taking office. The industry also helped him return to power with major donations. His family businesses have also turned to crypto, getting involved in Bitcoin mining and launching memecoins.
Political support has been a major factor in policy changes that allow banks like JPMorgan and its rivals to become more involved in the crypto industry.
Morgan Stanley is also making progress. The bank is working on adding crypto trading to its E*Trade platform, according to Bloomberg. At Davos, Morgan Stanley CEO Ted Pick said the bank is looking for new ways to engage in the crypto market under Trump's leadership.
Even with all these new opportunities, Jamie Dimon still warns of the risks of crypto. He has cited concerns about money laundering, human trafficking, terrorism, and unclear asset ownership when discussing Bitcoin.
But none of this prevents its bank from including it in loan agreements and client wealth assessments. This move by JPMorgan makes it easier to use crypto for real-world finance, just as it would any other asset.
Cryptopolitan Academy: Tired of market fluctuations? Learn how DeFi can help you build a stable passive income. Register now
