JPMorgan to Launch Bitcoin and Ethereum-Backed Loans Amid Regulatory Shift

• JPMorgan plans to offer Bitcoin and Ethereum-backed loans by 2026 as crypto regulations become clearer.

• The bank’s shift follows strong institutional demand and changing sentiment from CEO Jamie Dimon.

• More traditional banks like Morgan Stanley are also moving into crypto as Washington softens its stance.

JPMorgan, the world’s largest bank, is preparing to offer Bitcoin and Ethereum-backed loans as early as 2026. This marks a major shift from the firm’s earlier stance on crypto. CEO Jamie Dimon, once a vocal critic of Bitcoin, has now signaled a more open position amid growing institutional demand and a favorable U.S. regulatory environment.

Major Pivot Following CLARITY Act

The bank’s plans follow the recent enactment of the Market Structure Act, also known as the CLARITY Act. The legislation introduces a clear framework for digital assets, creating new momentum among traditional financial institutions. A report from the Financial Times confirms that JPMorgan is developing lending products backed by clients’ crypto holdings, though these plans may still evolve.

JPMorgan reportedly focuses on Bitcoin and Ethereum due to their dominance and liquidity. The loans would allow clients to use their crypto as collateral, potentially unlocking new capital without selling core holdings.

This strategy signals a broader push by Wall Street into digital assets. BlackRock and Fidelity have already launched Bitcoin and Ethereum ETFs. Now, banks like JPMorgan and Morgan Stanley are actively positioning themselves for the next phase of crypto integration.

From Resistance to Embrace

The pivot is particularly notable given Jamie Dimon’s history with crypto. In earlier years, Dimon labeled Bitcoin a “fraud” and discouraged JPMorgan staff from engaging in crypto trading. According to internal sources, those statements reportedly cost the bank business by alienating crypto-focused clients.

However, recent remarks from Dimon reflect a more permissive stance. In May, he stated, “I defend your right to buy bitcoin. Go at it.” That shift aligns with wider acceptance of digital assets within the banking sector.

JPMorgan has also begun exploring stablecoin options to compete with players like Tether and Circle. Under the GENIUS Act, the bank lays the groundwork for a possible native stablecoin offering.

Institutional Confidence in Crypto Grows

The upcoming White House Crypto Policy report, expected July 22, is also a key factor. Analysts expect a lighter regulatory approach under the Trump administration than stricter oversight during Biden’s term. This shift is fueling renewed activity across financial institutions.

Morgan Stanley is evaluating crypto trading through its E*Trade platform. Meanwhile, JPMorgan’s entry into crypto-backed loans and ETFs reflects the growing institutional conviction in digital assets.

If successful, the initiative would mark one of the strongest endorsements of Bitcoin and Ethereum from traditional finance. It’s another step toward deeper integration with global banking for the crypto ecosystem.