JPMorgan Chase has reportedly frozen bank accounts linked to two venture-backed stablecoin startups after identifying exposure to sanctioned and high-risk jurisdictions. The accounts belonged to BlindPay and Kontigo, two stablecoin startups backed by Y Combinator that primarily operate across Latin America. Both companies accessed JPMorgan’s banking services through Checkbook, a digital payments firm that partners with large financial institutions. The freezes occurred after JPMorgan flagged business activity tied to Venezuela and other locations subject to US sanctions.
A spokesperson for JPMorgan reportedly said the decision was not driven by opposition to stablecoins themselves. “This has nothing to do with stablecoin companies,” the spokesperson told The Information. “We bank both stablecoin issuers and stablecoin-related businesses, and we recently took a stablecoin issuer public,” the spokesperson added. Checkbook CEO PJ Gupta reportedly told The Information that BlindPay and Kontigo were among several firms linked to a surge in chargebacks that prompted the bank to close accounts.
The account freezes come as JPMorgan and Checkbook deepen their partnership. In November 2024, the two companies announced that Checkbook would join the J.P. Morgan Payments Partner Network, enabling corporate clients to send digital checks. Checkbook also expanded its B2B payment offerings earlier in 2024, targeting sectors such as legal services, government and banking. Cryptocurrencies are becoming a core part of the economy in Venezuela as citizens turn to digital assets to shield themselves from a collapsing currency and tighter government controls.
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