Is the startup funding wave for stablecoins cooling down? JPMorgan upgrades account controls for emerging payment companies

The new stars in the stablecoin sector’s financing scene are facing “tests” from traditional financial institutions. According to industry reports, JPMorgan Chase has recently imposed account restrictions on at least two payment startups focused on the Latin American market, involving the projects Blindpay and Kontigo. Both companies have received support from well-known venture capital firm Y Combinator, with business operations covering regions such as Venezuela.

Bank Risk Control and Startup Financing “Friction”

These two startups established business relationships with JPMorgan Chase through the payment service platform Checkbook but ultimately encountered restrictions due to account-related issues. From the timing, this reflects the cautious attitude of traditional banks toward emerging digital payment fields, especially when these services operate in high-risk regions.

JPMorgan Chase Response: Policy Adjustment Rather Than Industry Bias

In response, JPMorgan Chase clarified that account management decisions are not targeted at the stablecoin business model itself. The bank emphasized that it provides traditional banking services to digital currency issuers and supports the operations of related enterprises. Recently, it even participated in the listing process of a stablecoin issuer. This indicates that JPMorgan Chase does not hold a blanket negative attitude toward the stablecoin industry but manages it with differentiated approaches within a risk and compliance framework.

Industry Insights

This incident highlights the inevitable banking compliance challenges faced by stablecoin startups in their path toward internationalization. For blockchain payment projects targeting emerging markets, managing relationships with traditional financial institutions will be a key factor in whether they can expand smoothly.