JPMorgan may soon offer loans against cryptocurrency
What's the story
JPMorgan Chase is considering a new financial service: loans backed by the cryptocurrency holdings of its clients. The potential move would include popular cryptocurrencies such as Bitcoin and Ethereum. According to the Financial Times, the US bank could roll out this service to its customers as early as next year.
Others
BoA and Citibank taking similar steps
The potential step by JPMorgan comes as other major US banks, like Bank of America and Citibank, are developing stablecoins. This is being done amid a broader push for more cryptocurrency-friendly regulation in Washington DC.
Leadership stance
JPMorgan CEO's interest in stablecoins
JPMorgan's CEO Jamie Dimon, who has been a long-time skeptic of Bitcoin, recently said the bank shall be involved in stablecoins. Back in May, he had said he is "not a fan" of the Bitcoin universe due to concerns like leverage, misuse, and money laundering issues. As far as the news of crypto-backed loans is concerned, JPMorgan declined to comment on the Financial Times report and did not respond to a request for comment by Reuters.