Jamie Dimon Once Called Bitcoin A 'Fraud'—Now JPMorgan Might Lend Against It

JPMorgan Chase JPM is reportedly preparing to offer loans backed by cryptocurrencies such as Bitcoin BTC/USD and Ethereum ETH/USD, marking a significant step toward integrating digital assets into traditional finance.

If finalized, the initiative could begin as early as next year, The Financial Times reported on Tuesday, quoting sources familiar with the bank's plans.

What Happened: While details remain under review and subject to change, the potential move highlights a broader shift among major U.S. banks toward embracing crypto finance.

This development contrasts sharply with CEO Jamie Dimon's earlier stance.

Once a vocal critic who labeled Bitcoin a “fraud” in 2017, Dimon has since softened his rhetoric.

In May, he said that while he personally doesn't recommend investing in Bitcoin, he supports an individual’s right to do so.

JPMorgan has already signaled openness to crypto by exploring loans collateralized by cryptocurrency exchange-traded funds.

Lending directly against crypto tokens like Bitcoin and Ethereum would mark a further step into digital asset banking.

In comparison, rival institutions like Goldman Sachs have not yet adopted crypto as acceptable collateral.

Also Read: Ethereum, Solana, XRP Outpace Bitcoin: Is The Altcoin Trade Here To Stay?

Why It Matters: A growing shift in political climate, including more favorable regulatory signals from the second Trump administration, is influencing these strategic moves.

Morgan Stanley MS, for example, is reportedly considering enabling crypto trading on its E*Trade platform.

Last week, the U.S. House of Representatives passed its first major crypto legislation, focusing on stablecoin regulation.

Large banks welcomed the bill as a way to gain legal clarity and better integrate crypto into mainstream banking.

Stablecoins, unlike traditional cryptocurrencies, are pegged to fiat currencies like the U.S. dollar and are often viewed as less volatile and more compliant.

However, challenges remain.

To offer loans directly backed by crypto, JPMorgan must first resolve key operational and compliance issues.

These include handling digital assets from borrowers who default, as the bank does not currently hold crypto on its balance sheet.

Any new product would likely involve a third-party custodian such as Coinbase COIN, which offers crypto custody services.

Though traditionally cautious, JPMorgan has been active in blockchain innovation.

In 2019, it developed one of the first digital coins issued by a major U.S. bank, further evidence of its evolving stance on the future of finance.

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