JPMorgan Exploring Loans Backed by Bitcoin, Ethereum: FT

Key Points

1. JPMorgan is considering offering loans backed by Bitcoin and Ethereum, potentially starting as early as next year.

2. This move represents a shift from CEO Jamie Dimon's previous dismissal of Bitcoin as a "fraud" in 2017.

3. Basel III banking rules impose a 1,250% risk weighting on crypto exposure, making it costly for banks to hold crypto-backed loans directly.

4. JPMorgan's interest in crypto-backed loans may signal progress in evolving Basel III guidelines and growing institutional interest in Bitcoin.

5. The bank has already confirmed it will accept crypto ETF shares as loan collateral and is expanding its stablecoin development efforts.