EddieJayonCrypto
22 Jul 25
JPMorgan is considering allowing clients to borrow cash using Bitcoin and Ethereum as direct collateral, a shift from its current policy of only permitting loans against crypto-related products like ETFs. This move could give JPMorgan a competitive advantage over banks like Goldman Sachs. The bank p...
JPMorgan, the largest US bank by total assets, is reportedly considering a groundbreaking move to allow its clients to borrow cash using Bitcoin (BTC) and Ethereum (ETH) as direct collateral. This would mark a significant policy shift, as the bank has so far only permitted loans against crypto-related products like exchange-traded funds (ETFs).
If implemented, this initiative could give JPMorgan a competitive edge over other major players such as Goldman Sachs, which have yet to approve cash borrowing against cryptocurrencies. The bank plans to rely on third-party custodians to manage crypto-backed loans, ensuring secure handling of these digital assets.
This potential policy change represents a notable turnaround for JPMorgan's CEO Jamie Dimon, who has traditionally expressed skepticism and criticism toward cryptocurrencies. As recently as May, Dimon voiced concerns about the notion of the US government stockpiling Bitcoin, underlining his previously hostile stance on the asset class.