JPMorgan Chase’s Crypto Pivot Could Reshape Lending Strategies for Card Issuers

Banking-industry giant JPMorgan Chase is exploring the idea of using a client’s cryptocurrency assets when making lending decisions. 

That move would represent a significant shift in thinking by the company’s leadership. It also reveals that cryptocurrency may have more use cases in the credit arena as financial institutions consider ways to incorporate digital assets into lending strategies.

JPMorgan Chase’s CEO, Jamie Dimon, is no stranger to making bold statements. Earlier this year, he issued an apology for the language he used when dismissing employee concerns over the company’s hybrid work model.

Now it’s his about-face on cryptocurrencies that’s making waves in lending circles. Dimon previously referred to Bitcoin as a “fraud” and “a Ponzi scheme.”

Digital assets have made great strides toward mainstream legitimacy in 2025 — capped last week by President Donald Trump signing the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law.

“The GENIUS Act will make America the undisputed leader in digital assets, bringing massive investment and innovation to our country,” according to the White House’s fact sheet on the act.

Dimon’s change of heart on the role cryptocurrency can play in lending may lead to significant innovation for card issuers.

The Financial Times reported that JPMorgan Chase could lend directly against cryptocurrency holdings as soon as sometime next year, according to people familiar with the matter. 

“The move would underscore the extent to which big banks, and the regulated financial industry more broadly, are opening up to closer interaction with cryptocurrencies,” the report said.

JPMorgan Chase declined to provide a comment on the story to the Financial Times.

JPMorgan Chase is a leader in the banking industry, and any move the company makes is sure to attract attention in financial circles. 

If credit card issuers start accepting cryptocurrency holdings as collateral for secured cards, it could expand access to credit for more consumers.”

A recent report reveals that the number of people who hold more than $1 million in cryptocurrency assets grew by 95% in 2024 to 172,300. And many others hold smaller amounts in cryptocurrencies.

An issuer that announces its plan to use a customer’s cryptocurrency holdings to inform lending practices can attract digital-asset enthusiasts who may have abandoned the traditional banking system. And once those customers open one solution with a crypto-friendly bank, they may decide to try the financial institution’s other products and services.

The number of people who own more than $1 million in cryptocurrencies grew by 95% in 2024.

Issuers should be cautious about rushing to use cryptocurrency in lending decisions. The GENIUS Act was only just signed into law, and unforeseen issues could still arise as the market and regulations evolve.

One major concern is volatility — fluctuating crypto prices make it difficult for lenders to assign stable value to these assets.

“While volatility is a concern, I think with the right coverage ratios this is a great business model,” Tony DeSanctis, a Senior Director with Cornerstone Advisors, told American Banker. “I think the opportunity is significant but will take some pretty specific and unique underwriting.”