JPMorgan Chase has frozen the bank accounts of two stablecoin startups, BlindPay and Kontigo, after identifying potential links to regions considered high-risk. The bank's internal review notably highlighted connections with Venezuela, which is subject to strict US sanctions, leading the bank to take immediate action.
In brief
- JPMorgan froze the accounts of BlindPay and Kontigo due to identified ties to Venezuela and other regions subject to U.S. sanctions.
- Both startups are backed by Y Combinator and operate primarily in Latin America using JPMorgan through the Checkbook platform.
Stablecoin startups hit by account freezes
The two affected startups, both backed by Y Combinator and active primarily in Latin America, used JPMorgan's banking services through digital payments company Checkbook. The freezes were triggered after the bank detected activity linked to Venezuela and other territories subject to U.S. restrictions, raising compliance concerns.
JPMorgan wanted to clarify that this decision did not reflect any hostility towards stablecoins or blockchain-based companies. A spokesperson for the bank recalled that the establishment continues to work with stablecoin issuers and companies in the sector, notably mentioning its recent role in supporting an issuer during an IPO. According to the bank, the measure was exclusively motivated by regulatory compliance requirements.
Checkbook CEO PJ Gupta provided additional clarification, explaining that the BlindPay and Kontigo accounts were part of a larger set of accounts affected by a significant increase in chargebacks. He said rapid customer onboarding, allowing large numbers of users to open accounts online in a short time, had led to an increase in disputes, leading JPMorgan to temporarily freeze accounts.
US sanctions against Venezuela accelerate the adoption of cryptocurrencies
These account freezes occur in a context of tightening American sanctions against Venezuela under the presidency of Donald Trump. Recent measures include the seizure of an oil tanker leaving Venezuelan waters, the second such interception in a month, as well as previous decisions, such as the March 2025 imposition of a 25% tariff on the country's oil sector.
These actions have increased economic pressure on Venezuela, pushing many private buyers to turn to cryptocurrencies. Following the March tariff, Venezuelan buyers reportedly acquired approximately $119 million in digital assets, using these currencies as a tool for financial stability in the face of sanctions and growing economic constraints.
Stablecoins at the heart of the Venezuelan economy
Cryptocurrencies, and specifically stablecoins, are increasingly adopted in Venezuela, where citizens seek to preserve their purchasing power in the face of devaluation of the national currency and increased government controls.
Beyond individual use, stablecoins now play a central role in the country's economy. Nearly 80% of oil revenues are reportedly processed via USDT, which is emerging as a key tool for energy revenue management. This dynamic illustrates the way in which digital currencies are gradually integrating into daily economic activity in a constrained financial environment.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
