FT: JPMorgan Considering Bitcoin-Backed Loans

Chairman Dimon Once Called Bitcoin a "Fraud"
Digital Assets Aim for Mainstream Financial Integration

JPMorgan Chase, the largest bank in the United States, is considering offering crypto asset-backed loan products, according to a report by the Financial Times (FT) on July 21 (local time). FT noted that this move signals the largest U.S. bank is now actively joining efforts to integrate digital assets into the mainstream financial system.

Jamie Dimon CEO of JPMorgan Chase

Citing sources, FT reported that JPMorgan may begin offering loans directly backed by crypto assets such as Bitcoin and Ethereum as early as next year. However, the sources added that these plans could still change in the future. Prior to this, JPMorgan is reportedly planning to first introduce loans backed by holdings of spot crypto asset exchange-traded funds (ETFs).

FT pointed out that for Bitcoin-backed loans to become a reality, technical challenges must be resolved regarding how to handle seized Bitcoin if a borrower defaults. Currently, most U.S. banks, including JPMorgan, do not reflect crypto assets on their balance sheets, making it likely that they will partner with third-party custodians such as Coinbase to store customers' crypto assets.

JPMorgan CEO Jamie Dimon harshly criticized Bitcoin eight years ago, calling it a "fraud" and saying that "Bitcoin is only useful to drug dealers or murderers." FT evaluated that, considering Dimon's past remarks, JPMorgan's current policy shift represents a dramatic turnaround.

During an earnings conference call on July 15, Dimon stated, "We are involved with both JPMorgan deposit coin (JPMD) and stablecoins, and we are working hard to understand them well and handle them properly." He added, "I don't know exactly, but I think they actually exist," while also saying, "However, I don't really understand why people want stablecoins instead of just a simple payment method."

Previously, the U.S. House of Representatives passed the first legislation regulating crypto assets last week, including the "Stablecoin Bill" and the "GENIUS Act." This legislation incorporates stablecoins into the regulatory framework and clarifies standards and responsibilities for the issuance and management of crypto assets.