US Edition
Jamie Dimon Once Called Bitcoin A 'Fraud'—Now JPMorgan Might Lend Against It
UNITED STATES, JUL 22 – JPMorgan plans to let clients borrow cash using Bitcoin and Ethereum as collateral, aiming to launch by 2026 amid clearer U.S. regulations and growing demand, sources say.
- On Tuesday, the Financial Times reported that JPMorgan is exploring offering loans backed by cryptocurrencies like Bitcoin and Ethereum as collateral.
- This initiative follows a shift in JPMorgan's approach from CEO Jamie Dimon's earlier skepticism, including calling Bitcoin a fraud in 2017.
- The bank plans strict rules requiring borrowers to maintain a large crypto cushion and likely use third-party custodians to manage risks and compliance.
- Dimon said, "We're going to allow you to buy it, we're not going to custody it," reflecting cautious involvement and concerns over leverage and misuse.
- If implemented, this move could legitimize crypto lending, signal broader acceptance of digital assets in finance, and spur similar banking sector actions.
51 Articles
51 Articles
Eight years ago, JPMorgan Chase CEO Jamie Dimon called bitcoin a “fraud” that would “eventually explode” and be useful only to drug dealers and murderers. But he has since changed his mind, and the banking giant is now preparing to lend against the cryptocurrencies held by its clients.
The Node: JPM’s BTC Lending Play
The Financial Times reports that JPMorgan, the world’s biggest bank, is looking into issuing crypto-backed loans, meaning that its clients may soon be able to pledge bitcoin, ether, or some other token to borrow dollars.The news is notable for a couple of reasons. Crypto folks love pointing out that Jamie Dimon, the bank’s chief executive, famously said in 2017 that he’d fire any employee caught trading bitcoin for being “stupid,” so JPMorgan co…
Good morning! The major US bank JPMorganChase is considering accepting cryptocurrencies as collateral for loans. The Financial Times reported this on…
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