JPMorgan Chase is reportedly considering the option of allowing clients to use their cryptocurrency holdings, including Bitcoin and Ethereum, as collateral for loans starting next year, as indicated by the Financial Times.
This move highlights a notable shift in CEO Jamie Dimon’s previously stringent views on the cryptocurrency sector, which he once stated he would seek to dismantle. In 2023, during a Senate Banking Committee hearing, Dimon expressed strong reservations, claiming, “I’ve always been deeply opposed to crypto, bitcoin, etc. The only true use case for it is criminals, drug traffickers…money laundering, tax avoidance.”
However, by May, Dimon’s perspective had evolved significantly. He announced plans for clients to purchase Bitcoin and remarked, “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin.”
Moreover, the bank is taking steps toward stablecoins, introducing a new deposit token named JPMD, which will serve as a digital representation of a commercial bank deposit. This progression illustrates JPMorgan’s increasing engagement with the cryptocurrency landscape.