The financial giant JPMorgan Chase is reportedly considering loaning against its clients’ Bitcoin (BTC) and Ethereum (ETH) holdings.
The Financial Times, citing anonymous sources “familiar with the matter,” reports that the top global investment bank could start lending against crypto assets next year.
JPMorgan, which declined to comment to FT, would likely have to employ a third-party platform to custody crypto assets seized from customers who default on their loans.
The potential development clashes with JPMorgan chief executive Jamie Dimon’s past criticisms of crypto. Dimon has called Bitcoin a “pet rock” and argued there are no real use cases for the top crypto asset other than illicit transactions.
In 2024, however, he argued that people should have the right to trade BTC regardless of his personal feelings about the asset.
“Now my last statement, the last time I ever talk about Bitcoin, is I defend your right to do Bitcoin. I think it’s okay. I don’t want to tell you what to do. So my personal advice is don’t get involved, but I don’t want to tell anybody what to do. It’s a free country.”
JPMorgan Chase recently informed fintech companies such as PayPal, Venmo and Coinbase that they will need to begin paying to access their customers’ bank account information, according to a Bloomberg report.
The fintech companies use the information, which has been free, to make it easier for their customers to send, receive and trade money. JPMorgan is reportedly poised to collect hundreds of millions of dollars in fees for the service.
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