According to recent reports, JPMorgan, the largest bank in the US, may start lending to clients against Bitcoin and other cryptocurrencies as early as 2026, underscoring the growing support from banks for crypto assets.
New Lending Prospects at JPMorgan
The Financial Times reports that JPMorgan may begin providing loans secured by cryptocurrencies, possibly as soon as 2026. This decision highlights how banks and regulated financial institutions are becoming more open to interacting with cryptocurrencies.
Partnerships with Third Parties for Crypto Custody
As JPMorgan does not hold cryptocurrency on its balance sheet, the bank will need to partner with a third party that will provide custody of the crypto on its behalf, such as Coinbase. This is necessary to address technical issues related to handling crypto seized from clients who do not repay their loans.
Impact of New Laws on the Crypto Industry in the US
This move comes amid the signing of the GENIUS Act by President Donald Trump, which aims to support the digital asset industry. The Act seeks to create a clear regulatory framework for dollar-backed stablecoins, which could lead to a revolution in financial technology, likened to the birth of the Internet.
Support from major banks like JPMorgan and new legislation in the crypto space can significantly boost the adoption of digital assets in the US and worldwide.
