JPMorgan Explores Bitcoin and Ethereum-Backed Loans for Clients

JPMorgan Chase is reportedly considering offering loans backed by bitcoin and ethereum holdings, potentially marking a first among major US banks.

This move comes as regulators clarify that banks may offer digital asset services if they meet strict compliance standards.

JPMorgan’s Potential Crypto Lending Initiative in Focus

According to The Financial Times, JPMorgan is exploring loans secured by clients’ crypto assets. Although the plan is in early stages, industry experts call it a significant development.

JPMorgan may launch these crypto‑backed loans as soon as next year, the report said.

If it moves forward, customers could use Bitcoin, Ethereum, or similar assets as collateral for loans. While discussions are ongoing, no launch date or official confirmation appears on JPMorgan’s website.

This step could reshape how digital assets interact with traditional banking. Fintech startups already offer crypto-backed loans, but when trusted names like JPMorgan explore the space, mainstream acceptance may accelerate. Interest in crypto custody and lending is growing among large institutions.

The latest development comes as the bank recently revealed plans to launch JPMD, a deposit-based token on the Base blockchain, beginning with a pilot program. In May, JPMorgan also announced that the bank will facilitate client purchases of digital assets.

JPMorgan’s crypto involvement reflects a broader industry trend as US banks adapt to clearer rules. Now, traditional institutions are pursuing services once limited to crypto-native firms.

Regulatory Shifts Open the Door for Banks

The ability for banks to provide crypto-collateralized loans depends on regulatory guidelines. In April 2025, the Federal Reserve revised its approach, removing major barriers for national banks.

The Federal Reserve’s announcement confirms that prior requirements for explicit approval of crypto activity were dropped. As a result, banks may now offer crypto services as long as they uphold safety and compliance.

Similarly, the Office of the Comptroller of the Currency (OCC) affirmed in March 2025 that national banks may handle crypto custody and related activities. The OCC noted that these ventures, including crypto-collateralized lending, are permitted only with strict risk controls and routine regulatory oversight.

No explicit restrictions for crypto-backed loans exist today, but each bank must notify regulators and demonstrate strong risk management. This new flexibility allows well-funded institutions to pilot digital asset services.

Mainstream banks now hold advantages over newer crypto lenders. With established custody operations and rigorous compliance standards, they may offer lower rates or greater safety to clients seeking crypto-backed loans.