Why is JPMorgan cutting off neobanks from stablecoins in Latin America despite its crypto-friendly message

Source: Yellow Original Title: Why is JPMorgan Cutting Neo-Banks of Stablecoins in Latin America Despite Its Crypto-Friendly Message

Original Link: https://yellow.com/es/news/por-qué-jpmorgan-está-cortando-a-los-neobancos-de-stablecoins-en-américa-latina-pese-a-su-mensaje-cripto‑amigable JPMorgan Chase has quietly frozen accounts belonging to two fast-growing fintech companies focused on stablecoins, intensifying long-standing tensions between traditional banks and native crypto payment platforms operating in high-risk jurisdictions.

The affected companies include Blindpay, which enables stablecoin-based payments in Argentina, Mexico, Colombia, and Brazil, and Kontigo, a platform focused on Venezuela that offers on-ramps, remittances, and transactions in digital dollars.

Both companies rely heavily on the U.S. banking infrastructure to move funds and support their remittance networks.

The bank says the measure is not related to crypto

Despite the timing and these firms’ heavy reliance on stablecoins, JPMorgan insisted that the decision was not related to the companies’ involvement in the crypto sector.

A bank spokesperson stated: “This has nothing to do with stablecoin companies. We bank both stablecoin issuers and businesses related to stablecoins, and recently we took a stablecoin issuer public.”

It is worth noting that JPMorgan acted as the lead coordinator in the Circle IPO, the largest ever listing of a stablecoin issuer, which reinforces its argument that the decision was not motivated by the sector.

Privately, however, bank sources suggested that geographic risk was a key factor.

Fintechs operating in regions of economic crisis or jurisdictions with high AML concerns may expose their banking partners to greater compliance responsibilities.

This interpretation aligns with JPMorgan’s broader risk reduction strategy in regions linked to capital controls, hyperinflation, or unstable regulatory environments.

Rapid growth drew the attention of startups

Blindpay recently received $3.3 million from Y Combinator, Circle Ventures, Bitso, and others to expand its presence in Latam.

Kontigo, backed by a prominent crypto venture capital fund, raised $20 million this year and claims to have processed $1 billion in payments, $30 million in annualized revenue, and 1 million active users in its first year.

For now, it is unclear to what extent account freezes will affect these companies or if they have already migrated to other banking partners.

The situation seemingly highlights a recurring pattern: native crypto neobanks serving economies in distress remain at the mercy of traditional banking compliance frameworks, even as demand for stablecoins in these markets accelerates.