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Jamie Dimon Once Called Bitcoin a Fraud. Now JPMorgan Might Lend Against It
From “worthless” to “we’ll take it as collateral” in just eight short years.
In a plot twist worthy of its own NFT collection, JPMorgan (NYSE: JPM) is reportedly preparing to offer crypto-backed loans—letting clients borrow against their bitcoin and ether holdings, according to the Financial Times.
Yes, that JPMorgan. The one whose CEO Jamie Dimon once called Bitcoin “a fraud.” The one that mocked crypto bros, refused to touch tokens, and made you think they’d rather back a casino than a blockchain.
But times—and administrations—change.
What’s Actually Happening?
- JPMorgan is considering loans collateralized by BTC and ETH
- This would be a step beyond its current policy, which only allows loans against crypto ETFs (like BlackRock’s IBIT)
- With Trump-era crypto regulations creating a more bullish environment, launch could happen as early as 2026
- Jamie Dimon, still skeptical of stablecoins, appears less allergic to crypto than before
This isn’t a meme coin meme dream. It’s JPMorgan dipping a diamond-shoed toe into the deep end of decentralized finance.
So… Is This a Good Idea?
Yes—with very strict boundaries.
Lending against crypto can be smart, if:
- Loans are overcollateralized (e.g., borrow $50k against $100k in BTC)
- Collateral is held in secure, bank-grade custody (not on some sketchy offshore wallet)
- JPM applies rigid margin call rules to account for volatility
Crypto-backed lending is already done by players like Coinbase, BlockFi (RIP), and Nexo, but those firms often took on more risk than their balance sheets could handle.
JPMorgan has the risk infrastructure, capital buffers, and regulatory compliance to do it safely—if they avoid yield-chasing.
It’s not about being pro-crypto. It’s about being pro-collateral discipline.
Done wrong? It’s a replay of 2022.
Done right? It’s modern banking with programmable collateral.
Why This Matters:
This would mark one of the largest traditional banks directly embracing crypto asset collateral—and it could:
- Legitimize bitcoin and ether as “real” financial instruments
- Open the door to institutional-grade crypto lending, backed by real risk desks
- Pave the way for stablecoin rails and tokenized finance at the world’s biggest banks
Basically: JPMorgan may finally be realizing what everyone else figured out in 2021—crypto isn’t going away, and there’s money to be made.
What Changed? (Hint: Politics)
One word: Trump.
With a more crypto-friendly regulatory climate returning under the Trump administration, Wall Street sees an opening:
- The SEC has cooled off (a bit)
- Crypto ETFs (like BlackRock’s IBIT) are gaining legitimacy
- Regulatory guidance is shifting from “thou shalt not” to “maybe with paperwork”
And JPMorgan, with stock at all-time highs, has the capital—and now the cover—to get aggressive.
Investor Takeaways:
For JPMorgan (JPM):
- Smart move into a high-margin lending category with limited competition
- Risk is manageable via overcollateralization and crypto ETF custody
- May attract younger, crypto-native clients into JPM’s ecosystem
For Bitcoin/Ether (BTC, ETH):
- Bullish on-chain signal—Wall Street doesn’t lend against junk
- Adds “institutional credibility” as JPM sets pricing benchmarks on crypto collateral
- Might reduce sell pressure in bear cycles (if holders can borrow instead of sell)
For Everyone Else:
- Morgan Stanley and Citi are likely watching closely
- Coinbase may feel threatened—this is tradfi eating crypto’s lunch again
- Binance? Probably sending a fruit basket to Jamie Dimon right now
Final Thought:
Years ago, Jamie Dimon called Bitcoin a fraud.
Now? His bank is gearing up to say:
“Sure, we’ll take it as collateral.”
That’s not just irony. That’s progress. And it shows that in the end, even the titans of Wall Street would rather bank bitcoin than fight it.
DISCLAIMER: This analysis of the aforementioned stock security is in no way to be construed, understood, or seen as formal, professional, or any other form of investment advice. We are simply expressing our opinions regarding a publicly traded entity.