How America’s largest bank went from denigrating to embracing Bitcoin despite CEO Dimon’s resistance.
In recent years JPMorgan Chase, America’s largest bank, has undergone a transformation, going from Bitcoin enemy to facilitator of institutional capital’s entry into the digital asset world. Controversial is the figure of Jamie Dimon: the CEO who for years defined Bitcoin as “fraud,” now leads an institution that not only allows clients access to spot ETFs, contributing to Bitcoin’s institutionalization, but accepts these same instruments as collateral to obtain a loan.
When Bitcoin was “fraud”
JPMorgan’s path toward Bitcoin acceptance is dotted with critical statements from the bank’s CEO. In 2014, during a CNBC interview, the CEO declared:
“Bitcoin is a terrible store of value, it can be replicated infinitely. It doesn’t have the authority of a government.”
In September 2017, Dimon minced no words: “Bitcoin is fraud,” adding that he would “fire in a second” any trader at his bank caught trading the cryptocurrency, calling those who did it “stupid” and comparing the phenomenon to the famous tulip bubble of the 17th century.
2023 saw perhaps the peak of his skepticism: before the American Senate, Dimon labeled Bitcoin as a “pet rock,” arguing that its “only real use case is for criminals, drug traffickers, money laundering and tax evasion,” and going so far as to suggest that, if he were the government, he would have “shut down” Bitcoin.
Dimon’s change of position, albeit timid, was noticed in his May 2024 statements:
“I don’t think you should smoke, but I defend your right to smoke. Therefore I defend your right to buy Bitcoin.”
The internal experiment: blockchain yes, Bitcoin no
While Dimon publicly criticized Bitcoin, JPMorgan Chase followed a different strategy. Between 2017 and 2018 the bank began experimenting with blockchain technology and DLT (Distributed Ledger Technology), recognizing its potential to “rethink traditional models of financial market infrastructures.” According to the company, blockchain integration into traditional finance would make transactions “more efficient and transparent” while reducing counterparty risks.
In 2019 the bank launched JPM Coin, a digital currency pegged to the US dollar designed for instant payments between institutional clients. This was not a retail product, but an internal tool to facilitate immediate fund transfers.
In 2020 Onyx was born, the blockchain-dedicated business unit, renamed Kinexys in November 2024. This division has developed platforms like Kinexys Digital Payments and Kinexys Digital Assets, offering services ranging from digital financing to tokenized collateral networks. The unit was tasked with developing and commercializing blockchain products, solutions and infrastructures for the bank’s activities and clients.
JPMorgan also developed Quorum, a permissioned blockchain that reflects the closed and controlled approach typical of traditional finance’s early experiments with digital assets.
Spot ETFs change everything
The SEC’s approval of Bitcoin spot ETFs in January 2024 represented a watershed moment. Success was immediate: currently these instruments collectively manage over $128 billion, making them among the most successful ETF launches in American history.
JPMorgan Securities was named Authorized Participant (AP) for BlackRock’s iShares Bitcoin Trust (IBIT), the leading Bitcoin spot ETF. The AP role is fundamental: these entities maintain alignment between the ETF price and its underlying assets, managing the creation and redemption of shares. The SEC’s approval of the “cash model” – where APs provide liquidity to the issuer who then purchases bitcoin – opened the doors to traditional banks like JPMorgan. In practice, the bank leverages its existing infrastructure and regulatory compliance expertise to facilitate capital flow into these regulated products.
From AP to trading: client demand wins
Last May JPMorgan took a further step toward the main cryptocurrency, opening to Bitcoin spot ETF trading. According to Time, the main catalyst for this decision was client pressure, particularly from high-net-worth and institutional clients seeking diversification. For the American magazine, with over $3,000 billion in managed assets, JPMorgan risked losing clients to competitors like Goldman Sachs and Morgan Stanley, already active in the sector.
Reinforcing this direction came the news of accepting Bitcoin ETFs as collateral for loans. This policy, applied globally to both retail and institutional actors, places Bitcoin on par with traditional assets like stocks, real estate and artwork in calculating clients’ net worth and liquidity.
JPMorgan’s recent decision to accept Bitcoin ETFs as collateral represents Wall Street’s capitulation in the face of Bitcoin’s inevitability. Jamie Dimon can continue to define Bitcoin as a “pet rock” in his public statements, but the reality tells a different story. His bank cannot afford to stay on the sidelines while competitors ride the wave of history’s most performing asset.
