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3d ago

JPMorgan Explores Loans Secured by Bitcoin and Ethereum

New federal legislation offers clarity on stablecoin issuance, prompting the bank to test digital assets as loan collateral.

JPMorgan JPMorgan Chase Jamie Dimon Ethereum Markets bitcoin business

Overview

  • People familiar with the matter told the Financial Times that JPMorgan could begin offering loans secured by Bitcoin and Ethereum as soon as 2026.
  • The bank confirmed it will accept crypto ETF shares such as BlackRock’s iShares Bitcoin Trust as collateral for client loans.
  • President Trump signed the GENIUS Act, establishing a federal framework for stablecoin issuance and trading.
  • Basel III’s 1,250% risk weighting on crypto exposure requires the bank to hold $1 in capital for every $1 of crypto-backed loans.
  • Rival institutions are accelerating crypto initiatives, with Morgan Stanley considering trading through its E*Trade platform, Citigroup exploring a bank-branded stablecoin.