JPMorgan plans to offer Bitcoin and Ethereum-backed loans in 2026, marking a strategic shift toward integrating digital assets into traditional banking under an increasingly clear regulatory environment.
JPMorgan Chase, one of the world's most influential banks, is developing a plan to offer loans backed directly by cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
According to sources cited by the Financial Times and Reuters, The initiative could be launched in 2026 and would allow customers use your BTC and ETH holdings as collateral without having to sell them, thus accessing liquidity without having to part with their digital assets.
If these plans come to fruition, they would represent a notable shift in the bank's historical stance toward cryptocurrencies. Jamie Dimon, CEO of JPMorgan, has been for years one of the most vocal critics of the crypto ecosystem, calling Bitcoin a “fraud” in 2017 and a “decentralized Ponzi scheme” in 2022.
However, in recent months Dimon has softened his tone, Recognizing the right of customers to trade Bitcoin and digital assets and announcing that the bank will participate in the development of stablecoins and crypto loans, although without directly holding such assets.
BUY BITCOIN ON BIT2MEJPMorgan approaches cryptocurrencies with a concrete proposal
JPMorgan's crypto lending plan doesn't come in a vacuum. The bank already offers financing backed by cryptocurrency-linked instruments, such as ETFs, and has developed its own digital deposit token called JPM Coin, which is used for institutional payments. The difference now is that it's considering directly accept BTC and ETH as collateral, which entails technical, regulatory and operational challenges.
To mitigate potential risks, JPMorgan has said it will not hold the assets on its balance sheet. Instead, it will work with external custodians who will manage and liquidate the collateral in the event of default. This structure, according to the sources consulted, will allow the bank to offer crypto services without directly exposing itself to the volatility of digital assets, complying with international regulatory requirements, such as those of Basel III, which assigns a risk weight of 1.250% to loans not covered by crypto assets.
On the other hand, the objective of this initiative is to attract clients with significant crypto assets, both individual and institutional, who are seeking liquidity without selling their cryptocurrencies. Thus, JPMorgan aims to position itself as a bridge between traditional finance and the digital ecosystem, offering institutional products with banking standards.
A clearer regulatory environment is driving entry into the crypto world.
JPMorgan's turnaround coincides with key regulatory developments in the United States. On July 18, President Donald Trump signed the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins), which establishes the first federal framework for the issuance and oversight of stablecoins in the country. The law requires 1:1 backing in dollars or liquid assets, monthly audits, and strict compliance with anti-money laundering regulations.
In addition, Congress is currently debating the CLARITY Act, which seeks define the regulatory structure of the crypto market, delineating the responsibilities of the SEC and the CFTC, and establishing criteria for classifying digital assets as securities or commodities. This law includes protections for self-custody, disclosure rules for issuers, and a process for certain tokens to evolve from securities to commodities if they achieve sufficient decentralization.
Both laws have been well received by the financial sector, which sees them as an opportunity to expand crypto products under clear rules. JPMorgan, Citibank, and Bank of America have already announced plans to issue stablecoins or explore crypto-backed loans. under the promise of a clearer and more robust regulatory framework for these digital assets.
BUY BITCOIN WITHOUT HASSLE HEREThe race to dominate crypto banking is accelerating.
JPMorgan's proposal has generated mixed reactions. On the one hand, analysts see the bank's move as an institutional validation of cryptocurrencies, which could be increasingly integrated into mainstream financial products. On the other hand, doubts persist about the operational viability and risks associated with the volatility of cryptocurrencies like BTC and ETH as collateral.
Experts such as Citigroup's Jevgenijs Kazanins point out that using crypto assets as collateral can offer financial flexibility, but it requires robust risk management models and a solid legal infrastructure. Others warn that while the regulatory environment has improved, there is still a lack of clarity regarding crypto lending oversight and consumer protection.
Despite all this, what seems clear is that JPMorgan is not alone. The competition to lead crypto banking is intensifying, and Large banks are already adapting their strategies to avoid being left behind in this financial evolution marked by cryptocurrencies.The combination of institutional demand, technological innovation, and favorable regulation is accelerating the convergence between traditional finance and digital assets.
A new stage for traditional banking
Overall, JPMorgan's proposal to offer loans backed by Bitcoin and Ethereum marks a turning point in the relationship between traditional banking and the crypto ecosystem. Beyond the symbolism, it represents a pragmatic commitment to integrating digital assets into mainstream financial products, under demanding regulatory and operational standards.
If the plan materializes in 2026, as reported, it could open new avenues for financing for crypto users, expand the legitimacy of these crypto assets, and accelerate their institutional adoption. In this context, it's clear that crypto banking is no longer a remote possibility, but a reality in the making, and JPMorgan, with its global reach and influence, is preparing to be a part of it.
BUY AND SELL BITCOIN ON BIT2ME
