Banks are gearing up to offer crypto-backed lending for digital currencies like Bitcoin (BTC) and Ethereum (ETH). A recent Financial Times report from July 22, 2025, indicates that JPMorgan Chase is examining the potential for lending against clients’ crypto holdings starting next year.

Should this plan move forward, JPMorgan Chase will set a precedent as the largest U.S. bank to support cryptocurrencies. However, the institution has signaled that these plans may evolve over time.

With Bitcoin and Ethereum as collateral, crypto-backed lending represents fresh opportunities for users. This trend among major U.S. financial institutions reflects a pro-crypto regulatory climate under the Trump administration.

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🚨 JUST IN: JP Morgan, with $4.3T in assets under management, is now exploring crypto-backed loans for clients. Yes, $BTC and $ETH as collateral. The same banks that laughed in 2017? They are positioning now. pic.twitter.com/LIM7U1GmfJ — Wise Advice (@wiseadvicesumit) July 22, 2025

The bank’s CEO, Jamie Dimon, has voiced reservations about cryptocurrencies, previously labeling them as a fraud. Nevertheless, he has softened his view on stablecoins, recognizing them as legitimate and confirming JPMorgan Chase’s engagement with both deposit tokens and stablecoins, though he has questioned their practicality over traditional payment systems. His remarks were made during an earnings call on July 15, 2025, where he outlined the bank’s intention to engage with this asset class to become proficient.

Dimon’s remarks aligned with Citigroup’s announcement regarding its entry into the stablecoin market, as CEO Jane Fraser revealed the bank’s plans to develop a stablecoin for payment solutions.

JPMorgan Already Supports Crypto-Backed Lending For Select Clients

While exploring a broader lending model against cryptocurrencies, JPMorgan has already set up solutions that allow certain clients to borrow against crypto ETFs. Since June 2025, select clients have had the opportunity to borrow against Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust.

JPMorgan plans to widen its outreach to additional funds post-launch, primarily targeting high-net-worth individuals. This shift signifies the increasing influence of cryptocurrencies on credit evaluations.

If borrowing against ETFs marks the initial phase, the logical subsequent step would allow loans secured by actual digital assets, contingent on addressing technical barriers about managing crypto collateral during defaults.

Dimon previously communicated that the bank would soon enable clients to purchase Bitcoin without providing custody services, adding, “I don’t think you should smoke, but I uphold your right to buy Bitcoin.”

The decision to initiate lending against cryptocurrencies is part of a larger policy shift in the U.S., accentuated by President Donald Trump’s endorsement of the GENIUS Act, signed recently.

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Key Takeaways

• JPMorgan Chase may launch its crypto-backed lending program for BTC and ETH next year, although plans are subject to change.
• The bank’s CEO has softened his previously hardline stance on stablecoins.
• If executed, JPMorgan Chase will become the largest U.S. bank to embrace cryptocurrencies.