JPMorgan to allow crypto purchases with Coinbase

JPMorgan Chase has partnered with crypto exchange Coinbase to introduce crypto integrations to its customers, a step in bridging traditional finance with digital assets. 

Coinbase announced Wednesday that Chase credit card holders can use their cards to buy crypto on Coinbase starting this fall. In addition, Coinbase said JPMorgan’s customers will also be able to redeem their Chase Ultimate Rewards Points for USDC (USDC) in 2026. 

Coinbase said this will be the first major rewards program redeemable for crypto. “For the first time, points from a major credit card rewards program will be redeemable for crypto rewards,” Coinbase said. 

Coinbase also said Chase card users can link their accounts to Coinbase directly. The exchange said this feature, scheduled for 2026, will give users easier ways to buy crypto. 

Source: Coinbase

JPMorgan continues its crypto journey

The new integration follows a broader push by JPMorgan into digital assets.

On July 16, JPMorgan CEO Jamie Dimon revealed in an earnings call that the company had plans to be involved in stablecoins. The move was driven by competition with other fintech companies that are trying to replicate traditional financial systems.

“We’re going to be involved in both JPMorgan deposit coin and stablecoins to understand it and be good at it,” Dimon said.

Apart from stablecoins, JPMorgan is reportedly looking to offer direct loans against Bitcoin (BTC) and Ether (ETH). On July 22, the Financial Times cited anonymous sources who reported the bank’s exploration of crypto-backed loans. 

The report said the bank may start lending against crypto by 2026. However, the plans are subject to change. 

Related: Tyler Winklevoss claims JPMorgan blocked Gemini over public criticism

Fees, collateral remain DeFi’s edge on crypto lending

Even though JPMorgan may be eyeing crypto loans, decentralized finance (DeFi) players still have advantages over the bank and other traditional finance players on crypto loans, according to 1inch co-founder Sergej Kunz. 

On Wednesday, Kunz told Cointelegraph that DeFi’s strengths lie in offering a wider range of accepted loan collateral. He added that market-driven optimization in DeFi allows users to enjoy lower fees. 

Magazine: Crypto traders ‘fool themselves’ with price predictions — Peter Brandt