JPMorgan to Offer BTC & ETH Crypto-Backed Loans by 2026
JPMorgan Chase plans to launch crypto-backed loans against Bitcoin (BTC) and Ethereum (ETH) by 2026. The service will let ultra-high-net-worth and institutional clients borrow against actual BTC and ETH holdings without selling assets. Instead of holding collateral on its balance sheet, JPMorgan will partner with licensed custodians such as Coinbase Prime and Anchorage Digital.
This move builds on existing loans secured by crypto ETFs like BlackRock’s IBIT and follows the GENIUS Act. The act provides a clear regulatory framework for tokenized assets, stablecoins, and custody.
As of May 2025, the crypto-backed loans market has rebounded to $39 billion from $9.6 billion in late 2022. JPMorgan plans conservative loan-to-value ratios of 30–50%, with real-time monitoring and automated liquidation triggers to manage volatility and compliance risks.
If launched, JPMorgan would be among the first major U.S. banks to offer direct BTC and ETH-backed loans. This could legitimize crypto-backed loans, boost market liquidity, and prompt competitors like Goldman Sachs and Citibank to follow.
Bullish
This development is bullish for Bitcoin and Ethereum because it signals growing institutional adoption and new liquidity channels. Crypto-backed loans could boost demand for BTC and ETH as collateral needs rise. Conservative loan-to-value ratios and partnerships with licensed custodians reduce risk. In the short term, launch announcements may drive positive sentiment and trading volumes, while long-term mainstream bank involvement could underpin price stability and gradual appreciation.