JPMorgan considers offering loans backed by clients’ cryptocurrency holdings: Report

JPMorgan Chase is exploring plans to offer loans backed by clients’ cryptocurrency holdings, including bitcoin and ether, as early as next year, the Financial Times reported on Tuesday, citing people familiar with the matter.

The move comes as other major U.S. banks, including Bank of America and Citibank, are developing stablecoins amid a broader push for more crypto-friendly regulation in Washington.

CEO Jamie Dimon, a longtime bitcoin skeptic, recently said that the bank will be involved in stablecoins.

JPMorgan declined to comment to the FT. The bank did not immediately respond to a Reuters’ request for comment outside regular business hours.

In May, Dimon told investors that he is “not a fan” of the bitcoin universe citing concerns, including leverage, misuse, and money laundering issues in the system, ruling out getting into custody, storing crypto assets for clients, or expanding significantly even if regulations ease.

“We’re going to allow you to buy it, we’re not going to custody it,” he said, likening the approach to permitting behavior he personally disagrees with.