FT: JPMorgan considers launching cryptocurrency-backed lending

What’s new? JPMorgan Bank is exploring the possibility of offering loans backed by customers’ cryptocurrency assets, including bitcoin and ETH. FT sources told that the new product could be launched in 2026. Implementing the initiative would be a dramatic change in the approach of CEO Jamie Dimon, who has called bitcoin a “fraud” and predicted its collapse.

Material by FT

What else is known? Dimon has consistently expressed skepticism about bitcoin, but told investors in May this year that the bank would make it easier for customers to access the cryptocurrency, although it would not provide custodial services even if regulation was relaxed. It reiterated concerns about leverage and money laundering risk.

According to FT, JPMorgan has already made tentative moves in the crypto sphere, including plans to lend against shares of crypto exchange-traded funds (ETFs).

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The news comes amid favorable changes to US crypto regulation: last week, Donald Trump signed into law GENIUS (Guiding and Establishing National Innovation for U.S. Stablecoins Act).

It would establish a federal regulatory framework for stablecoins, require them to be fully backed by dollars or other highly liquid assets and audited annually for issuers with an asset capitalization of more than $50 billion. It would also establish rules for issuance of stablecoins by foreign firms.

Other major US banks, including Bank of America and Citibank, have already begun developing stablecoins. Dimon had also said the previous day that JPMorgan would participate in the development of stablecoins.

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Dimon sees stablecoins as a practical extension of existing payment infrastructure. Retail-focused stablecoin will expand settlement capabilities to a broader customer base across multiple blockchains.

He noted that the inaction of traditional financial institutions could allow non-banks to intercept cross-border flows and merchant payments.

That said, analysts at JPMorgan released a report in July suggesting that financial regulators outside the US are more likely to support tokenized bank deposits rather than stablecoins. Especially those that preserve the existing structure and stability of fiat banking systems.

Central banks and regulators, including the Bank of England, are leaning toward digital instruments issued by commercial banks that remain fully integrated into the existing financial system.

These tokenized deposits operate on a blockchain-based infrastructure while retaining the basic safeguards of traditional deposits, such as access to central bank liquidity, capital reserves, and compliance with AML rules.

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In the same month, analysts at JPMorgan adjusted their prediction for growth in the capitalization of the stablecoin market by 2028, lowering it from $1 trillion to $500 billion.

They noted that usage of this asset type remains concentrated in crypto trading, DeFi protocols and cryptocurrency collateral, with payment applications accounting for only $15 billion or 6% of total demand.

Wider adoption is hampered by limited use cases and fragmented regulation, making stablecoins unlikely to replace traditional currencies, JPMorgan writes.