JPMorgan mulls new asset lending scheme aimed at crypto ETF investors

JPMorgan Chase & Co. plans to let trading and wealth-management clients use some cryptocurrency-linked assets as collateral for loans, a major step by the biggest US bank to make inroads into an industry President Donald Trump has pledged to support. 

The firm will start providing financing against crypto exchange-traded funds, beginning with BlackRock Inc.’s iShares Bitcoin Trust, in the coming weeks, people familiar with the matter said. The move marks the latest effort involving crypto among the biggest US banks after the Trump administration started removing regulatory barriers. 

In some cases, JPMorgan will also begin taking wealth-management clients’ crypto holdings into account when assessing their overall net worth and liquid assets, the people said, asking not to be named as the plans aren’t public. That means cryptocurrencies will be given similar treatment to stocks, cars or art when calculating how much a client can borrow against their assets. 

A spokesperson for JPMorgan declined to comment. 

JPMorgan was one of the first major banks to start using blockchain technology for services like payments, and counts crypto exchanges like Coinbase Global Inc. among its clients. Chief Executive Officer Jamie Dimon has long been a skeptic of cryptocurrencies themselves. He said at the firm’s investor day in May that he’s “not a fan” of Bitcoin, but that JPMorgan would allow clients to buy it. 

“I don’t think we should smoke, but I defend your right to smoke,” Dimon said at the time. “I defend your right to buy Bitcoin, go at it.” 

In wealth management, the changes apply to all of the bank’s clients globally, spanning multiple levels of wealth — from retail customers to high-net-worth individuals, the people said. 

Big banks have been making plans to give clients access to crypto this year, responding to client demand and a more favorable regulatory environment. Rival Morgan Stanley is working on a plan to add cryptocurrency trading to its E*Trade platform, Bloomberg reported last month. 

The bank previously allowed some clients to use their crypto ETFs as collateral only on a case-by-case basis, the person said. Other crypto ETFs are expected to be included after the change is made, they added. 

Spot-Bitcoin ETFs were introduced in the US in January 2024 and have swelled to oversee a combined $128 billion, making them one of the most successful launches ever. Meanwhile, the cryptocurrency itself has skyrocketed since Trump won the presidential election last November, reaching an all-time high of $111,980 in May. 

After donations from the industry helped propel Trump and other crypto-friendly politicians into power, the president has pushed a raft of policies in support of the sector. His family businesses have also expanded rapidly in the industry, with endeavors ranging from Bitcoin mining to memecoins.