JPMorgan will start letting its trading and wealth clients borrow cash using crypto-related assets as collateral, according to Bloomberg. The plan kicks off in the next few weeks, starting with loans backed by BlackRock’s iShares Bitcoin Trust. The bank will also start counting crypto assets in some clients’ net worth calculations, putting Bitcoin and other digital holdings in the same category as stocks, cars, and artwork. That matters because it affects how much money clients can borrow from the bank. This new model will apply to all of JPMorgan’s wealth clients worldwide, including both retail and ultra-high-net-worth clients. JPMorgan opens crypto access beyond a case-by-case basis Before this change, JPMorgan only accepted crypto ETFs as loan collateral under specific conditions. With this new system, the bank is going wide, starting with BlackRock’s Bitcoin ETF and then expanding to other exchange-traded crypto products later. These changes are coming at a time when demand for crypto access among clients is climbing, and the federal stance on digital assets is becoming more relaxed. Jamie Dimon, the bank’s CEO, has stayed critical of Bitcoin. During the May investor day, he said, “I don’t think we should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin, go at it.” He made it even clearer earlier this year at the 2024 World Economic Forum in Davos, Switzerland. “Bitcoin does nothing. I call it the pet rock,” Jamie said. “This is the last time I’m talking about this with CNBC, so help me God.” Despite that view, the bank has been working with crypto platforms for years. It uses blockchain tech for internal services and counts Coinbase among its clients. These new credit policies show that while Jamie is not a fan of Bitcoin, JPMorgan has no problem profiting from it as long as there’s client demand. Trump administration clears barriers for Wall Street Trump’s return to the White House in January 2025 has changed how US regulators treat crypto. The FDIC and Office of the Comptroller of the Currency have scrapped previous anti-crypto policies. Even the Federal Reserve has stepped back, though not completely. There’s still a 2023 notice in effect that limits some crypto-related bank activities. But thanks to the repeal of SAB 121, banks are now allowed to custody crypto, something that was previously off-limits. Since these regulatory rollbacks, crypto has exploded. Bitcoin broke a new all-time high in May, reaching $111,980, just a few months after Trump’s election win in November 2024. ETFs tied to Bitcoin, which launched in the US in January 2024, now manage about $128 billion. That’s one of the fastest product growth rates Wall Street has seen. Trump has been actively pushing crypto policies since taking office. The industry also helped him return to power with major donations. His family businesses have moved into crypto too, getting involved in Bitcoin mining and launching memecoins. The political backing has been a major factor in the policy changes that are letting banks like JPMorgan and its rivals get deeper into the crypto industry. Morgan Stanley is also making moves. The bank is working on adding crypto trading to its E*Trade platform, according to Bloomberg. At Davos, Ted Pick, Morgan Stanley’s CEO, said the bank is looking for new ways to get involved in the crypto market under Trump’s leadership. Even with all the new opportunities, Jamie Dimon still warns about crypto risks. He has mentioned concerns about money laundering, sex trafficking, terrorism, and unclear asset ownership when discussing Bitcoin. But none of that is stopping his bank from making it part of clients’ loan agreements and wealth evaluations. This change from JPMorgan makes it easier for clients to use crypto for real-world finance, just like they would with any other asset. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
