Which bank froze stablecoin accounts?

TLDR

JPMorgan Chase froze accounts linked to stablecoin startups BlindPay and Kontigo after flagging sanctions risk in Venezuela, per a Cointelegraph report.

1. Reason cited: exposure to sanctioned jurisdictions such as Venezuela, according to the report.
2. The bank said the action was compliance driven, not anti?stablecoin, per the same report.
3. The startups accessed services via payments partner Checkbook, also noted in the report.

Deep Dive

1. Who and What

JPMorgan Chase reportedly froze bank accounts linked to BlindPay and Kontigo, two Y Combinator?backed stablecoin startups active in Latin America. The move followed risk reviews that tied some activity to Venezuela and other sanctioned regions, per a Cointelegraph report.

2. Why It Happened

The reported driver was sanctions compliance, not a blanket stance against stablecoins. A JPMorgan spokesperson said the decision has nothing to do with stablecoin companies, emphasizing that the bank also works with stablecoin issuers, per the report. The report adds that BlindPay and Kontigo accessed JPMorgan rails via Checkbook, a payments intermediary, which did not insulate them from sanctions screening by the bank, according to the same report.

3. Implications

Compliance friction remains a major operational risk for startups serving high?risk jurisdictions. Commentary tying the freeze to ongoing debanking debates also noted policy proposals to reduce blanket access issues for crypto firms (for example, skinny Fed accounts), but banking risk controls still dominate outcomes today, as summarized in a TradingView news roundup.

Conclusion

The bank involved was JPMorgan Chase, and the action targeted accounts linked to BlindPay and Kontigo based on sanctions?related exposure, per the report. The takeaway is regulatory, not a broad anti?stablecoin posture: access to banking hinges on sanctions and AML controls, especially in high?risk corridors.