JPMorgan Breaks Wall Street Taboo with Bitcoin-Backed Loan Program

JPMorgan is about to break one of Wall Street’s biggest taboos. The bank that once called Bitcoin a ‘fraud’ is now planning to let customers use it as loan collateral. JPMorgan is evaluating the credit product that would let retail and institutional clients borrow against their cryptocurrency assets, potentially launching in 2026.

The program would launch in the U.S. first, targeting both retail customers and institutional clients. JPMorgan aims to capitalize on rising crypto demand as regulations become clearer. 

Banking regulations make this expensive for JPMorgan – they’d need to hold $12.50 in reserves for every $1 they lend against crypto. To address custody requirements, JPMorgan would likely partner with established crypto custodians, as U.S. banks cannot hold digital assets directly on their balance sheets.

Despite CEO Jamie Dimon’s past criticism of bitcoin, calling it a “fraud” in 2017, JPMorgan has gradually entered the crypto sector. The bank launched JPM Coin for institutional payments in 2019 and began supporting client access to bitcoin via third parties.

In May 2025, Dimon announced plans to facilitate client purchases of bitcoin, though he stopped short of offering custody services. The bank’s approach reflects developments among major financial institutions as regulatory clarity improves.

Bank of America and Citigroup are both developing crypto-related credit products and digital payment solutions. The regulatory environment has become more favorable under the current administration’s crypto-friendly policies.

JPMorgan has not disclosed specific terms for the potential crypto-backed lending program or which custodial partners it might work with. If JPMorgan launches crypto-backed loans, it could force every major bank to follow suit – turning digital assets from Wall Street pariahs to mainstream financial tools.