JPMorgan is preparing to offer crypto backed loans using Bitcoin (BTC) and Ethereum (ETH) as collateral, according to a report from The Financial Times on July 22, 2025. The bank has not published an official statement, but the plans are reportedly in early stages.
If launched, this would make JPMorgan the first major U.S. bank to offer crypto backed loans. Clients could use digital assets like BTC or ETH as loan collateral. Discussions are ongoing, and no launch date has been confirmed.
This step follows regulatory changes allowing banks to offer digital asset services. JPMorgan is exploring how to manage risk, custody, and compliance under the new rules.
U.S. Regulators Remove Barriers for Crypto Lending by Banks
In April 2025, the Federal Reserve dropped its previous requirement for banks to obtain specific approval before offering crypto services. This allows institutions like JPMorgan to move forward with crypto lending as long as they meet compliance standards.
The Office of the Comptroller of the Currency (OCC) followed in March 2025, confirming that national banks can provide crypto custody and offer products like crypto backed loans, provided they maintain proper risk controls. These controls include regular oversight and strong internal monitoring.
Banks must still notify regulators before offering new crypto services. No blanket restrictions exist, but each bank must show it can manage related risks. The new rules allow large banks to operate in areas previously dominated by crypto startups.
JPMorgan Expands Digital Asset Offerings with Crypto Lending Plans
The move to study crypto backed loans is part of JPMorgan’s wider push into digital assets. In May 2025, the bank confirmed it would support client purchases of digital assets. It also announced a pilot for JPMD, a deposit-based token on Base blockchain.
JPMorgan has already developed systems for crypto custody. Adding crypto lending would build on existing infrastructure and regulatory clearance. If the service launches, it would likely be available to selected clients with approved wallets and assets held in secure custody.
The bank has not disclosed details such as interest rates, collateralization ratios, or liquidation rules. These will likely depend on ongoing internal reviews and feedback from regulators.
Traditional Banks Enter Crypto Lending With Institutional Advantage
Startups already offer crypto backed loans, but traditional banks have certain advantages. Large institutions like JPMorgan operate under strict compliance rules and already manage secure asset custody. These allow them to design products with closer oversight.
JPMorgan’s entry into crypto lending reflects growing interest among traditional financial firms. The combination of regulatory clarity and institutional infrastructure creates room for products that were previously limited to crypto-native companies.
While the timeline for launch is unclear, JPMorgan’s activity signals a shift in how U.S. banks approach digital assets. The bank continues to test new crypto-related services under changing U.S. rules, positioning itself among the first major players to expand crypto lending capabilities.
