- Neither startup reportedly had a direct banking relationship with JPMorgan, relying on Checkbook as an intermediary.
- The action has renewed debate over how willing traditional banks are to support crypto companies.
JPMorgan Chase has frozen accounts linked to stablecoin startups BlindPay and Kontigo after identifying activity tied to Venezuela and other high‑risk or sanctioned jurisdictions, raising fresh questions over how far traditional banks will go in servicing crypto businesses that operate in sensitive markets.
The startups, both backed by Y Combinator and focused on Latin American clients, reportedly accessed JPMorgan’s banking services through digital payments provider Checkbook, which has separately reported a surge in chargebacks among some of its partners.
According to The Information, JPMorgan froze the relevant accounts after linking activity to Venezuela and other sanctioned or high‑risk jurisdictions and after disputed transactions rose above an internal threshold.
JPMorgan has framed the move as a compliance-driven response rather than a broad stance against stablecoins. A bank spokesperson said the decision “has nothing to do with stablecoin companies” and noted that JPMorgan continues to serve stablecoin issuers and related businesses, including one that it recently helped take public.
See Related: Venezuela Cracks Down On Crypto Mining To Save Electricity
A Deepening Partnership Under Scrutiny
By integrating Checkbook into its partner network, JPMorgan aims to expand digital payment options for business clients while retaining oversight of third‑party providers.
Venezuela has become one of the starkest examples of how citizens turn to digital assets when local currencies collapse and capital controls tighten. Residents increasingly use cryptocurrencies and dollar‑linked tokens to preserve purchasing power and move money across borders, often via platforms that sit at the intersection of stablecoins and traditional banking rails.
That usage pattern creates a tension for US financial institutions that must enforce sanctions while serving clients that support those flows. The BlindPay and Kontigo freezes highlight how exposure to Venezuela can become a flashpoint even when a bank maintains a public posture of openness toward digital-asset innovation.
JPMorgan’s move lands against a broader backdrop of strained relations between large banks and crypto platforms. In July, Gemini co‑founder Tyler Winklevoss accused JPMorgan of halting the crypto exchange’s re‑onboarding process after he publicly criticised the bank’s data access policy. They claimed that the pause reflected anti‑competitive behaviour that could harm fintech firms.
