JPMorgan halts stablecoin startup accounts—are they focusing on compliance and risk control, or is there a deeper intention behind it?

In recent years, the rapid expansion of stablecoin startups in the Latin American market has attracted close attention from traditional financial institutions. Recently, major U.S. bank JPMorgan Chase took a notable step—freezing accounts of at least two startups operating stablecoin businesses. These companies targeted high-risk markets such as Venezuela.

Which companies were affected by the account freezes

According to The Information, the companies whose accounts were suspended by JPMorgan include the startups Blindpay and Kontigo. Both have similar backgrounds—they received funding from well-known venture capital firm Y Combinator and focus on providing digital asset services in Latin America. Originally, these companies established business relationships with JPMorgan through digital payment solutions provider Checkbook.

This account closure indicates that even stablecoin startups favored by top-tier investors are not immune to traditional financial system scrutiny. The compliance pressures faced by stablecoin companies expanding into high-risk countries are gradually becoming apparent.

JPMorgan’s stance: not opposed to stablecoins themselves

In response to external speculation, JPMorgan clarified its position. The bank emphasized that the decision to freeze these stablecoin startup accounts is unrelated to the stablecoin business itself and does not represent an attitude against the entire stablecoin industry. JPMorgan stated that it has consistently provided normal banking services to stablecoin issuers and related companies. Notably, JPMorgan has recently facilitated the listing process of a stablecoin issuer.

This statement indicates that JPMorgan’s actions are primarily driven by considerations of regional risks and compliance obligations, rather than a rejection of stablecoin technology.