- JPMorgan Chase will integrate crypto purchases and rewards redemptions via Coinbase for Chase customers starting in fall 2025.
- Eric Balchunas criticized the partnership’s 1.4% commission, urging JPMorgan to consider a low-cost Bitcoin ETF instead.
- JPMorgan is also exploring stablecoins and crypto-backed loans, signaling deeper involvement in digital assets by 2026.
JPMorgan Chase partnered with Coinbase to enable Chase customers to buy crypto, redeem rewards points for stablecoins, and link bank accounts directly to Coinbase.
Coinbase announced on Wednesday that starting this fall, Chase credit card holders will be able to fund their Coinbase accounts using their cards. By 2026, customers will also be able to redeem Chase Ultimate Rewards points at a 1:1 rate for USD Coin (USDC). This will mark the first time a major U.S. credit card rewards program can be converted directly into crypto.
Coinbase added that Chase customers will be able to link their bank accounts to Coinbase wallets in 2026. This integration aims to simplify crypto purchases by allowing direct transfers from Chase accounts to Coinbase.
Related: JPMorgan Files JPMD Trademark Application Covering Digital Asset Trading
JPMorgan Expands Its Digital Asset Push
The move follows JPMorgan’s increasing involvement in digital assets. On July 16, CEO Jamie Dimon said during an earnings call that the bank planned to work on stablecoins, citing competition from fintech firms replicating financial services.
“We’re going to be involved in both JPMorgan deposit coin and stablecoins to understand it and be good at it,”
Dimon said.
The bank is also reportedly considering crypto-backed lending. On July 22, the Financial Times reported that JPMorgan is exploring loans collateralized by Bitcoin and Ether, potentially starting in 2026. However, the plans remain under review.
Related: JPMorgan Files JPMD Trademark Application Covering Digital Asset Trading
Criticism Over High Fees
Despite the new partnership, some industry experts criticized the fee structure. Bloomberg ETF analyst Eric Balchunas expressed concern over the cost of crypto purchases via Coinbase.
Eric Balchunas wrote on X:
“I don’t understand. Why lead innocent investors into absurd those 1.4% commissions every time they buy crypto. Even 40bps too high IMO. Should just launch a JPM Bitcoin ETF (or pick existing one) and put them in that (1-2bps).”
Related: Coinbase Integrates Samsung Pay for Crypto Purchases in US and Canada
Balchunas argued that a low-cost Bitcoin ETF would provide cheaper exposure to crypto for investors compared to direct purchases with high transaction fees.
Meanwhile, decentralized finance (DeFi) protocols maintain competitive edges in areas such as loan collateral flexibility and lower fees, as they operate on automated smart contracts that reduce intermediary costs and expand accepted collateral types.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
