JPMorgan Chase Considers Offering Loans Backed by Clients’ Crypto Holdings: FT

JPMorgan Chase is exploring the idea of issuing loans backed by cryptocurrency assets, such as bitcoin and ether, according to a report by the Financial Times (FT) published on Tuesday. The bank is reportedly evaluating the proposal internally and could roll it out as early as next year.

As part of the plan, clients would be able to use their crypto holdings as collateral, though the final structure of the offering remains undecided. JPMorgan is also reportedly considering whether to accept crypto-linked ETFs as part of the collateral base.

JPMorgan Rethinks Crypto as U.S. Tightens Oversight

The exploration signals a cautious shift in strategy from JPMorgan, whose CEO, Jamie Dimon, has repeatedly criticized bitcoin. Still, Dimon confirmed in May that the bank would provide clients with access to crypto while stopping short of offering custody services.

Notably, this shift comes amid a changing regulatory landscape in the U.S., which may influence how banks approach crypto services. Just last week, President Donald Trump signed the GENIUS Act, a new law that creates federal rules for stablecoins.

The legislation requires all stablecoins to be fully backed by cash or other liquid reserves. It also introduces annual audit requirements for large issuers and sets compliance rules for foreign firms operating in the U.S. market.

Crypto ETF Sentiment Shifts

Meanwhile, crypto ETFs have shown contrasting trends. Spot bitcoin ETFs ended their 12-day net inflow streak on Monday, with total daily outflows reaching $131.35 million.

The most significant withdrawal came from Ark and 21Shares’ ARKB fund, which saw $77.46 million leave the product. Grayscale, Fidelity, Bitwise, and VanEck also reported negative flows, while BlackRock’s IBIT recorded no movement for the day.

Ether ETFs moved in the opposite direction, notching a twelfth straight day of inflows totaling $296.6 million. Fidelity’s FETH led with $126.93 million, followed by BlackRock’s ETHA, which received $102 million. Smaller inflows were reported for products by Grayscale and Bitwise.

The divergence between bitcoin and ether ETF flows suggests a shift in investor focus toward Ethereum. Combined with JPMorgan’s potential entry into crypto lending and recent federal legislation, these developments reflect a changing environment for digital assets in the U.S.

Get Trending Crypto News as It Happens. Follow CoinTab News on X (Twitter) Now