JPMorgan Chase & Co is planning to offer crypto-backed loans by 2026. The bank may allow clients to borrow against their holdings of Bitcoin (BTC) and Ethereum (ETH). The service will likely target ultra-high-net-worth individuals and institutional investors. These clients typically hold crypto in large amounts but prefer liquidity without selling their assets.
The loans will not be available to retail clients. JPMorgan has not announced a public timeline, but sources familiar with the matter say internal discussions are focused on launching within the next two years.
JPMorgan Already Offers Loans Backed by Crypto ETFs
The bank already provides loans backed by crypto-related exchange-traded funds (ETFs). Clients can pledge regulated products like the BlackRock iShares Bitcoin Trust (IBIT) as collateral.
This experience gives JPMorgan a regulated framework to expand into direct crypto-collateral lending. Instead of relying on ETFs, the next phase would use actual BTC and ETH held in custody.
This transition would require new infrastructure for crypto custody, collateral risk management, and regulatory reporting.
JPMorgan’s move comes shortly after the passage of the GENIUS Act, signed into law in July 2025. The legislation provides a regulatory framework for tokenized assets, stablecoins, and custody requirements.
The law clarifies how U.S. financial institutions can handle and lend against digital assets. It also provides rules for bankruptcy protection, collateral enforcement, and reporting obligations for banks engaged in crypto finance.
This legal clarity has been a major barrier for banks. With the GENIUS Act now law, major institutions are more comfortable integrating crypto-backed lending services.
Crypto Lending Market Rebounds After Collapse
The crypto-backed lending market, which shrank following the collapse of Celsius, Genesis, and BlockFi in 2022, has recovered. The total size of the crypto-backed lending market has grown to $39 billion as of May 2025. That’s up from around $9.6 billion in late 2022, when multiple crypto-native lenders collapsed.
Platforms like Celsius Network, Genesis, and BlockFi filed for bankruptcy during the last bear cycle. In response, institutional investors now prefer crypto lending solutions offered by regulated banks.
Using volatile assets like BTC and ETH as collateral raises risk concerns. JPMorgan is expected to partner with licensed custodians such as Coinbase Prime or Anchorage Digital to secure client assets.
The loans will likely come with conservative loan-to-value (LTV) ratios, possibly between 30% and 50%, to protect against price volatility. If the value of the collateral drops sharply, the bank could liquidate the crypto to cover the loan.
Real-time monitoring tools and automated liquidation triggers will be necessary. JPMorgan will also need internal approval from risk and compliance teams to handle crypto exposure under strict capital requirements.
Why JPMorgan’s Involvement Matters
Jamie Dimon, the bank’s CEO, has historically criticized Bitcoin, calling it “worthless” as recently as 2021. But under his leadership, JPMorgan has quietly expanded its crypto capabilities.
The firm’s blockchain unit, Onyx, already facilitates tokenized asset settlement. Its crypto strategy now includes ETF-backed lending, tokenized collateral services, and infrastructure partnerships with firms like WisdomTree and Avalanche.
Entering the crypto-collateral lending market would make JPMorgan one of the first major U.S. banks to do so. It could legitimize crypto loans as a permanent part of the financial system.
If JPMorgan launches the service, other banks may follow. Goldman Sachs and Morgan Stanley already offer crypto exposure to select clients. Citi and Bank of America have also been building internal crypto infrastructure.
Crypto-backed loans offer banks a new revenue stream while helping large clients unlock capital without selling their digital assets.
JPMorgan’s move may pressure competitors to introduce similar services to retain institutional relationships.
