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Michael Saylor, the founder and executive chairman of Strategy, has revealed a major 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 crypto skeptics have flipped to active participants in just 12 months, far ahead of the 4–8 year timeline experts once predicted. The Bitcoin evangelist explained that Citi, JPMorgan, Wells Fargo, BNY Mellon, Charles Schwab, and Bank of America have all entered the crypto lending market in the last six months alone.
At the Binance Blockchain Week in Dubai, Saylor said that the top 10 US banks now facilitate crypto lending, up from zero in Q4 2024. This was driven by Basel III reforms that classified Bitcoin as a Tier 1 asset, as well as a rise in demand for BTC-backed credit facilities.
According to data from a PwC report and Kaiko Research, $50 billion in new credit lines has been issued since September 2025. Banks captured 40% of the $150 billion annualized crypto lending market.
Saylor emphasized lending as the “tipping point,” with banks offering loans at 50-70% loan-to-value (LTV) ratios on Bitcoin collateral at interest rates of 4-6%. This is lower than DeFi alternatives.
JPMorgan leads in BTC-backed lending
JPMorgan has been a leader in lending backed by BTC. CEO Jamie Dimon, once a Bitcoin skeptic, softened his stance on the crypto earlier this year. As reported by Cryptopolitan, the company launched a $10 billion credit facility against Bitcoin collateral in October.
This extended its June 2025 policy, allowing clients to use spot Bitcoin ETFs (e.g., BlackRock’s IBIT) as collateral for loans across trading and wealth management.
According to reports, the company has announced plans for potential 2026 direct lending against BTC/ETH. This facility exemplifies Saylor’s point on banks issuing USD loans at low rates against BTC.
Wells Fargo joined the BTC lending wave in Q4 2025. It offers credit against Bitcoin ETFs and holdings following Basel III updates. It is now listed among the top banks facilitating crypto loans. Exploratory discussions on stablecoins have evolved into active BTC collateral programs.
Saylor referenced Wells Fargo’s Q4 shift, noting it “followed suit” after JPMorgan’s facility, with internal blockchain tests upgraded for tokenized BTC deposits, enabling credit issuance.
BNY Mellon expanded Bitcoin custody to include lending in Q4 2025, holding BTC for ETFs and issuing credit against it. According to reports, the bank issued trials of blockchain deposits for $2.5 trillion in payments, tokenizing BTC holdings for instant settlement and collateral use. According to Saylor, BNY’s ETF custody is a gateway to $50 billion in new credit lines.
Citi, BOF, and Charles Schwab’s aggressive 2026 entry into BTC custody and credit
Other banks have outlined their plans for next year. Citi is actively preparing to launch Bitcoin custody and lending services in 2026. A report made this month revealed Citi’s integration of CIDAP (Crypto Infrastructure for Digital Asset Platforms) to enable BTC-backed credit.
Additionally, at the beginning of Q4, Citi’s global head of partnerships confirmed that the bank has spent 2-3 years developing in-house and third-party custody solutions for native crypto coins like Bitcoin, targeting asset managers.
Bank of America will allow all of its affluent clients to invest 1% to 4% of their portfolios in crypto coins through Merrill and Private Bank, with an emphasis on Bitcoin ETFs as a collateralized form of investment, starting January 5, 2026.
Charles Schwab announced an aggressive 2026 entry into BTC custody and credit. The bank is set up for spot Bitcoin/Ethereum trading, as well as stablecoin issuance. CEO Rick Wurster confirmed that the $11.8 trillion platform will offer direct BTC trading in H1 2026, with lending against holdings via integrated brokerage. Saylor called it a “major change” for 37 million accounts.
Still, none of the six banks Michael Saylor mentioned hold Bitcoin or any other crypto coin directly on their own corporate balance sheets. US banking regulations and Basel III capital rules still make direct spot crypto ownership highly restrictive and capital-intensive for regulated banks.
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