Traditional Finance Adapts to Digital Assets
Michael Saylor, founder and executive chairman of Strategy, has revealed a significant shift in traditional finance, where Wall Street's largest banks are now providing credit backed by Bitcoin as collateral. According to Saylor, six banks that were previously skeptical of cryptocurrency have become active participants in just 12 months, a development that has occurred far ahead of the 4–8 year timeline that experts had once predicted. The Bitcoin evangelist explained that major financial institutions including Citi, JPMorgan, Wells Fargo, BNY Mellon, Charles Schwab, and Bank of America have all entered the crypto lending market within the last six months alone.
Speaking at the Binance Blockchain Week in Dubai, Saylor stated that the top 10 U.S. banks now facilitate crypto lending, a stark contrast to the zero activity reported in Q4 2024. This trend has been driven by the Basel III reforms, which classified Bitcoin as a Tier 1 asset, and a concurrent rise in demand for Bitcoin-backed credit facilities.
Data from a PwC report and Kaiko Research indicates that $50 billion in new credit lines have been issued since September 2025, with banks capturing 40% of the $150 billion annualized crypto lending market. Saylor emphasized lending as a crucial "tipping point," noting that banks are now offering loans with 50-70% loan-to-value (LTV) ratios on Bitcoin collateral at interest rates of 4-6%, which are lower than those found in Decentralized Finance (DeFi) alternatives.
JPMorgan and Wells Fargo Lead in BTC-Backed Lending
JPMorgan has emerged as a leader in lending backed by Bitcoin. CEO Jamie Dimon, who was once a vocal Bitcoin skeptic, has softened his stance on the cryptocurrency earlier this year. The company launched a $10 billion credit facility against Bitcoin collateral in October. This initiative extended its June 2025 policy, which allows clients to use spot Bitcoin Exchange-Traded Funds (ETFs), such as BlackRock’s IBIT, as collateral for loans across trading and wealth management services.
Reports suggest that JPMorgan has also announced plans for potential direct lending against Bitcoin and Ethereum in 2026. This facility serves as a prime example of Saylor's observation regarding banks issuing U.S. dollar loans at low rates against Bitcoin collateral.
Wells Fargo joined the Bitcoin lending trend in Q4 2025, offering credit against Bitcoin ETFs and holdings following the Basel III updates. The bank is now recognized among the leading institutions facilitating crypto loans. Exploratory discussions concerning stablecoins have evolved into active Bitcoin collateral programs.
Saylor referenced Wells Fargo’s Q4 shift, noting that the bank "followed suit" after JPMorgan's facility. This move involved upgrading internal blockchain tests for tokenized Bitcoin deposits, which in turn enabled credit issuance.
BNY Mellon and Expanding Crypto Lending Services
BNY Mellon expanded its Bitcoin custody services to include lending in Q4 2025, holding Bitcoin for ETFs and issuing credit against it. According to reports, the bank conducted trials of blockchain deposits for $2.5 trillion in payments, tokenizing Bitcoin holdings for instant settlement and collateral use. Saylor highlighted that BNY Mellon's ETF custody operations represent a gateway to an additional $50 billion in new credit lines.
Aggressive Entry into BTC Custody and Credit by Citi, Bank of America, and Charles Schwab
Other major banks have also outlined their strategic plans for the upcoming year. Citi is actively preparing to launch Bitcoin custody and lending services in 2026. A report released this month revealed Citi’s integration of CIDAP (Crypto Infrastructure for Digital Asset Platforms) to facilitate Bitcoin-backed credit. Furthermore, at the beginning of Q4, Citi’s global head of partnerships confirmed that the bank has spent two to three years developing in-house and third-party custody solutions for native crypto coins like Bitcoin, specifically targeting asset managers.
Bank of America will permit all of its affluent clients to invest between 1% and 4% of their portfolios in cryptocurrencies through Merrill and its Private Bank, with a particular emphasis on Bitcoin ETFs as a collateralized investment form, commencing January 5, 2026.
Charles Schwab announced an aggressive entry into Bitcoin custody and credit in 2026. The bank is prepared for spot Bitcoin and Ethereum trading, as well as stablecoin issuance. CEO Rick Wurster confirmed that the $11.8 trillion platform will offer direct Bitcoin trading in the first half of 2026, with lending against holdings facilitated through its integrated brokerage services. Saylor described this as a "major change" for the 37 million accounts on the platform.
Despite these advancements, none of the six banks mentioned by Michael Saylor hold Bitcoin or any other cryptocurrency directly on their own corporate balance sheets. U.S. banking regulations and Basel III capital rules continue to make direct spot crypto ownership highly restrictive and capital-intensive for regulated banks.