- The conflict reflects JPMorgan’s shift toward monetizing access to customer data by charging fintech companies and data aggregators to cover rising costs.
- This dispute unfolded amid Gemini’s confidential IPO filing and expansion into tokenized stocks.
Tyler Winklevoss, co-founder of crypto exchange Gemini, alleges that JPMorgan Chase stopped Gemini’s onboarding after he publicly criticized the bank’s new fee structure that charges fintech firms for access to customer banking data, Coindesk reported.
JPMorgan has defended its decision as a measure to curb misuse and protect consumers, emphasizing that nearly two billion monthly data requests mostly do not reflect actual customer activity.
This conflict highlights JPMorgan’s recent shift toward imposing fees on fintech companies and data aggregators like Plaid and MX, which serve as intermediaries connecting traditional banks with fintech and crypto services.
The bank cites rising costs for infrastructure, security, and fraud monitoring as justification for charging fees, aiming to make third-party data access sustainable and prevent excessive or unauthorized requests.
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Anti-competitive Policy
Winklevoss condemned JPMorgan’s policy as “anti-competitive” and detrimental to innovation, warning it threatens fintechs that facilitate linking bank accounts to crypto platforms. He also stated JPMorgan paused Gemini’s re-onboarding process following his public criticism. This situation follows a previous period dubbed Operation Choke Point 2.0, during which JPMorgan and other banks restricted services to crypto firms amid regulatory scrutiny.
Industry experts and fintech advocates express concern that JPMorgan’s fees could stifle competition, increase operational costs for startups, and eventually lead to higher prices for consumers. Some fintech leaders acknowledge the bank’s investment in data security but question the size and structure of the fees, fearing they may disproportionately burden smaller firms.
Gemini, which recently filed confidentially for an IPO and expanded its offerings to include tokenized stocks, faces challenges as this dispute unfolds. JPMorgan’s policy marks a significant shift in open banking dynamics, with broader implications for fintech innovation and the crypto market.
JPMorgan’s move to monetize customer data access has triggered strong pushback from fintech players like Gemini, intensifying debate over data control, competition, and the future of financial services integration.
