JPMorgan exploring crypto-backed loans amid stablecoin push: FT

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JPMorgan Chase is reportedly looking into crypto-backed loans, signaling a imaginable displacement successful however US banks respect crypto assets.

The Financial Times reported connected Tuesday, citing unidentified sources, that JPMorgan whitethorn commencement lending straight against crypto assets similar Bitcoin (BTC) and Ether (ETH).

The FT reported this whitethorn hap by 2026, though the plans are taxable to change.

The study followed a caller JPMorgan denotation that it is interested successful stablecoins. In a July 15 net call, JPMorgan Chase CEO Jamie Dimon said they program to beryllium progressive successful stablecoins. He said the slope volition beryllium progressive successful the plus people to “understand it” and “be bully astatine it.”

The comments came arsenic its rival Citigroup announced plans to participate the stablecoin race. In a post-earnings league call, Citigroup CEO Jane Fraser said the slope was considering issuing a stablecoin for payments.

Cointelegraph reached retired to JPMorgan for comments but had not received a effect by publication.

JPMorgan CEO softens stance connected crypto

In erstwhile years, Dimon had expressed anti-crypto sentiments. In 2017, helium called Bitcoin a “fraud” during a institution meeting, saying that helium would fire immoderate worker trading BTC connected the company’s accounts.

In 2018, Dimon criticized crypto during an event, calling it a “scam” and saying helium had nary involvement successful it.

In 2022, Dimon made much anti-crypto remarks, calling integer assets “decentralized Ponzi schemes.” Despite this, helium commented positively connected blockchain, decentralized concern (DeFi), astute contracts and “tokens that bash something.”

According to the Financial Times report, the unidentified root said that Dimon’s earlier anti-Bitcoin comments had alienated imaginable clients who made their wealth done crypto oregon were semipermanent believers successful the plus class.

More recently, Dimon started to soften his remarks connected crypto, saying he’d support people’s rights to bargain Bitcoin.

On May 19, Dimon said they volition allow JPMorgan clients to bargain BTC. However, the institution said it would not custody the crypto asset.

“I don’t deliberation you should smoke, but I support your close to smoke. I support your close to bargain Bitcoin,” Dimon said.