Author: Ivan Wu on Blockchain
In the Singapore payment circle, there is a thought-provoking saying: "The MPI is worth ten million, while the JPM account is worth one hundred million." This is not an exaggerated metaphor, but a true reflection of JPMorgan's position in the global financial system. For institutions attempting to engage in sensitive areas such as cross-border payments, virtual assets, and stablecoins, JPMorgan is not only the main gateway to the dollar system but also a strict measure of compliance and capability.
The founder of the leading cryptocurrency exchange Coinbase has openly stated that the biggest key factor for the company's success is not technology, user growth, or regulatory environment, but having a strong banking partner—JPMorgan. Since 2020, JPMorgan has become Coinbase's core bank, a relationship that not only opened up a dollar channel but also endorsed its "legitimacy" in the eyes of traditional finance in terms of compliance and reputation. In a context where the entire crypto industry struggles with marginalization by the banking system, such cooperation is undoubtedly a rare pass.
However, JPMorgan has never treated Bitcoin kindly. The current CEO Jamie Dimon has been one of the sharpest critics of cryptocurrencies for years. He has called Bitcoin a "fraud," emphasizing that it is primarily used for illegal transactions, and has publicly stated that he "will never buy Bitcoin." Even as Wall Street giants like BlackRock gradually embrace Bitcoin ETFs, Dimon continues to maintain his denial stance. The decentralized concept of Bitcoin clearly constitutes an essential opposition to the dollar-centric system represented by JPMorgan.
This article will focus on this financial giant, starting from its legendary birth and expansion, tracing how it gradually became the execution hub of the global dollar system, a symbol of the "temple-level bank," and its complex role in the modern crypto world. Through key cases such as Coinbase, Tether, stablecoins, and cross-border clearing networks, we will attempt to answer a core question that runs through financial history and on-chain reality: In this new era shaped by decentralization and power struggles, who exactly is JPMorgan?
I. The Legendary History of JPMorgan: From Railroad Tsar to Financial Savior
John Pierpont Morgan (J.P. Morgan), born in 1837, was a typical heir from a banking family with a "golden key" background. However, what truly made him a legendary figure in financial history was not his background, but his reshaping of the American economic system from the late 19th to early 20th century. Starting in 1871, he began large-scale integration of the American railroad system—at that time, the most important economic lifeline of the country was on the verge of collapse due to redundant construction and chaotic management. Morgan used capital as a knife to reorganize the disarrayed railroad companies, and by the end of the 19th century, one-third of American railroads were under his capital control. He earned the title "Railroad Tsar," not only leading the rebirth of an industry but also setting a precedent for private financial capital to reshape national infrastructure.
This ability to place private power above national structures was further demonstrated during the financial crisis from 1893 to 1895. At that time, the U.S. Treasury's gold reserves were about to run out, and Congress's attempt to issue bonds failed, putting the nation on the brink of a credit system collapse. At this critical moment, Morgan united a consortium of European banks to raise a $65 million gold loan to inject into the Treasury, thus preventing the U.S. from systemic default. This was a "lifeline" from private to the state, leading to a saying on Wall Street that still astonishes today: "If America were a company, Morgan would be the CEO." This not only recognized his financial power but also affirmed his operational capabilities to the utmost—Morgan's financial strength had surpassed the state machinery itself.
His capital operation capabilities peaked in 1901. That year, steel magnate Carnegie decided to retire, and Morgan completed the acquisition of Carnegie Steel for $480 million in cash, integrating it with several steel companies to form U.S. Steel—the first company in human history to have a market value exceeding one billion dollars. This was not only a century-defining merger but also marked the formal replacement of industrialists by financial capital as the highest power layer in the American economy. Morgan was no longer just the helmsman of railroads and banks; he had become the actual master of American industrial capital.
When the New York banking system fell into panic due to chain bankruptcies in 1907, and the government was once again powerless to respond, Morgan stepped up again. He locked the main bankers of Wall Street in his home library for fourteen hours, forcing everyone to reach a joint funding agreement to stabilize the market, which ultimately quelled the market turmoil. This event became a milestone in American history, marking the last time private financial power fully dominated the response to a systemic crisis—people began to realize that the fate of an entire nation could no longer be entrusted to a single banker. Six years later, the Federal Reserve was established. It can be said that Morgan was not only the highest embodiment of the old order but also a catalyst for the forced birth of the new order.
II. Temple-Level Bank: JPMorgan's Position in the Modern Global Financial System
If J.P. Morgan was a financial giant reshaping the national economic order with personal capital in the early 20th century, then JPMorgan today occupies a "temple position" in the global financial system as an institution. This bank is not only a symbol of Wall Street but also one of the infrastructures for global capital flow. As of now, JPMorgan's total assets have exceeded $30 trillion, ranking first in the U.S. and second globally, only behind a few state-owned behemoths. Such scale not only means it is a "behemoth" but also signifies that it has become a cornerstone existence of the entire dollar financial system.
The core of JPMorgan's power lies in its control over the global dollar clearing network. In terms of cross-border payments and international settlements, this bank has become an irreplaceable hub. Data shows that JPMorgan processes over $10 trillion in clearing payments daily, accounting for nearly 30% of the global dollar clearing market. This is not only a reflection of technical capability but also a result of the global trust system endorsing it. From ACH to Fedwire, from SWIFT to various localized financial infrastructures, JPMorgan has built the main artery for global dollar circulation, making it impossible for countless countries' cross-border financial businesses to bypass its clearing network. This also means that controlling JPMorgan equates to controlling the flow of dollars.
However, such a vast network does not come without thresholds. JPMorgan's compliance and risk control requirements are considered the "gold standard" globally, and its account opening review process is often referred to as the financial version of "the ladder to heaven." Only institutions with clear backgrounds, clean capital structures, and robust KYC and anti-money laundering mechanisms have the opportunity to become its clients. Therefore, successfully opening a JPMorgan account is not only a functional convenience but also a credit pass—it symbolizes that you have gained recognition from the world's strictest bank and have been included in the most core financial trust circle.
This highly concentrated and layered screening structure makes JPMorgan a near "national-level infrastructure" existence in the global financial system. "JPMorgan to dollar finance is like the power grid and water supply system in a city, the premise for all modern activities to operate normally." It is not only the underwriter for the U.S. Treasury's main bond issuances but also a key liquidity intermediary in the Federal Reserve System. It serves not only the market but also the will of the state, and at certain moments, it can even influence the stability and direction of international finance more than some central banks of small and medium-sized countries. JPMorgan is not just a bank; it is the execution hub of the dollar world order.
III. The Swordbearer of Dollar Hegemony: How JPMorgan Influences the Global Dollar System
If the Federal Reserve is the designer and rule-maker of the global dollar system, then JPMorgan is the most powerful executor of this system—it not only enforces the rules but also materializes and localizes these rules through its vast network, amplifying their actual impact globally. As a primary dealer in the U.S. Treasury market, JPMorgan regularly participates in the Federal Reserve System's open market operations, assisting in managing short-term liquidity and undertaking a large volume of U.S. Treasury issuance and distribution tasks through its investment banking division. In this structure, JPMorgan's role is both an operational ally of U.S. fiscal policy and the muscle of the dollar's international influence. It not only transmits policy but also constructs the infrastructure on which dollar hegemony relies.
The most intuitive manifestation of this "swordbearer" identity is in cross-border dollar clearing. In today's financial world, almost all scaled international dollar transactions cannot bypass clearing giants like JPMorgan. The dollar settlements conducted by enterprises, institutions, and even central banks typically must go through large commercial banks in the U.S.—and JPMorgan is the most critical node among them. This not only brings technical and efficiency advantages but also grants JPMorgan and its home country significant geopolitical financial power. When the U.S. imposes financial sanctions on a country or institution, one of the most common practices is to "cut off its dollar clearing capabilities," and JPMorgan is the direct executor and amplifier of such policies. Once excluded from JPMorgan's network, it means losing the right to connect with the global mainstream financial system.
Thus, for financial institutions worldwide, whether they can access JPMorgan's network is not only a matter of efficiency and cost but also a boundary issue of "financial sovereignty." If a payment institution can open a JPMorgan account, it means it has received core endorsement from the dollar system; conversely, if excluded, it may be forced to turn to marginal markets or secondary networks. This layered structure reinforces the hierarchical system of dollar hegemony and makes JPMorgan the most operationally significant power link in its chain.
At critical moments, JPMorgan's "systemic position" also manifests as a stabilizing force. During the 2008 subprime mortgage crisis, it took over Bear Stearns to help halt the spread of the crisis; and in the 2023 Silicon Valley Bank collapse, JPMorgan again stepped in to acquire First Republic Bank's assets, becoming a key force in stabilizing market expectations. Although this "white knight" behavior contains commercial motives, it also highlights JPMorgan's responsible position in the dollar financial system: it is not only the top beneficiary of the interest structure but also a guarantor of systemic stability. In this web of dollar hegemony woven by institutions and power, JPMorgan is a sharp sword—and also a shield against systemic collapse.
IV. JPMorgan and the Crypto World: Coexistence of Cooperation and Hostility
In the crypto world, having a JPMorgan bank account is almost equivalent to obtaining a "ticket" to the global mainstream financial system. For any institution engaged in cross-border payments, crypto asset custody, stablecoin clearing, and other businesses, such an account not only signifies high-efficiency dollar clearing capabilities but also serves as a compliance credibility endorsement. Especially in a context where regulation is becoming increasingly strict and traditional banks generally hold a wait-and-see or even hostile attitude towards crypto enterprises, JPMorgan's basic stance towards such clients has always been "default rejection." Therefore, when the saying "The MPI is worth ten million, while the JPM account is worth one hundred million" circulates in the Singapore industry, it reflects not only the scarcity of JPMorgan's resources but also the structural dilemma faced by the entire crypto industry in connecting with the traditional financial system.
The success of Coinbase is a typical example among the few cases of "breaking the circle." As the most representative compliant exchange in the United States, Coinbase has been able to smoothly access fiat channels, complete its IPO, and gain the trust of mainstream investors, relying on a whole set of financial infrastructure deeply tied to the banking system, with JPMorgan playing a key role. Since 2020, JPMorgan has begun providing banking services to regulated exchanges like Coinbase and Gemini, which was seen at the time as a significant signal of traditional finance's release into the crypto space. Coinbase co-founder Brian Armstrong has explicitly stated that one of the company's biggest early breakthroughs was winning the cooperation of large banks. "Without a bank account, we simply couldn't provide deposit services, let alone expand our business." The supportive role of JPMorgan in Coinbase's growth curve cannot be overlooked.
However, this does not mean that JPMorgan has "accepted" the crypto industry. On the contrary, its stance has always been cautious and boundary-conscious. JPMorgan has an internal crypto business review committee that strictly evaluates potential clients' governance structures, sources of funds, and compliance risks, with only a few institutions meeting its standards qualifying for services. More importantly, its support is often limited to companies that have deeply cooperated with regulators and have highly transparent operations. Once a company's business model involves anonymous transactions, off-chain arbitrage, or touches on areas that are "decentralized and unregulated," JPMorgan will decisively draw the line. This is not ignorance of technology but a proactive avoidance of institutional risk. JPMorgan does not oppose technological innovation, but it is more concerned with maintaining order and stability.
This position of maintaining order is particularly evident in JPMorgan CEO Jamie Dimon. Dimon may be one of the most hostile figures on Wall Street towards Bitcoin. He has publicly criticized Bitcoin on multiple occasions as a "scam" and a "meaningless speculative tool," linking it to illegal transactions and terrorist financing. Even as giants like BlackRock and Fidelity have successively launched Bitcoin ETFs, and even the U.S. government has begun discussing "moderate regulation," Dimon remains firm in his stance: "I will never buy Bitcoin." His attitude does not stem from conservatism but from a profound understanding of the system he is in. The peer-to-peer, intermediary-free, and untraceable value transfer path that cryptocurrencies aim to achieve precisely bypasses the financial central structure that JPMorgan relies on for survival.
Ultimately, the hostility between JPMorgan and the crypto industry is not merely an ideological dispute but a fundamental conflict at the systemic level. One side is a financial giant centered on regulation and clearing networks, relying on centralized trust and state credit; the other advocates for censorship resistance, self-custody, and permissionless innovation in the crypto network. In a sense, this game has no right or wrong; it is a natural collision of two paradigms. JPMorgan may accept some "intermediate" collaborations, such as regulated stablecoin issuers and on-chain payment settlement companies, but it will never truly welcome decentralized "alternatives." Because the ultimate direction of those alternatives is to extract the financial world from the banking system, which is precisely the future JPMorgan is most unwilling to see.
V. Tether and USDT: JPMorgan's "Shadow Opponent"
In the traditional financial system, the cross-border flow of dollars must rely on "central banks" represented by JPMorgan to complete clearing and settlement. However, since the birth of stablecoins, this pattern has begun to quietly loosen. Stablecoins, especially USDT issued by Tether, have constructed a de-banked on-chain parallel universe for the dollar: no bank account, no SWIFT network, no compliance license; users only need a blockchain address to complete cross-border transfers of dollars. In this system, the dollar is no longer dominated by banks like JPMorgan in terms of flow paths but is written into smart contracts, traversing between global exchanges, wallets, and DeFi protocols in a highly efficient and low-threshold manner. This change, in the eyes of the crypto industry, is almost a transfer of "monetary network sovereignty," with Tether becoming the clearing core of this new system.
The operational logic of Tether bears a striking resemblance to JPMorgan's role in the banking system. JPMorgan handles cross-border dollar transactions amounting to trillions annually, relying on a comprehensive Correspondent Banking system (agent bank network) that establishes high barriers and high trust in compliance review, clearing execution, and reserve management. While Tether has not been incorporated into mainstream financial regulation, it has also built a dollar liquidity system on the blockchain through "reserve asset custody + stablecoin issuance": global exchanges regard it as a primary unit of valuation and settlement, users complete fund inflows and outflows through USDT, and on-chain protocols use it as the core of liquidity, with even some gray area economic activities being settled in USDT. This makes Tether, in a sense, the "central bank of crypto dollars," or a "shadow JPMorgan" operating in a system it cannot directly control.
Naturally, JPMorgan will not remain indifferent to this. Although CEO Dimon has a generally negative attitude towards cryptocurrencies, JPMorgan's research and technology teams have already begun to explore feasible paths for a digital dollar. Launched in 2019, JPM Coin is a blockchain clearing token designed for institutional clients, supported by dollar assets held by JPMorgan itself, specifically for account settlements between clients. More importantly, it has initiated a blockchain project called ONYX, aiming to build a whole set of de-intermediated platforms suitable for interbank payments. This indicates that while JPMorgan is wary of the systemic risks posed by stablecoins, it is also absorbing their technological advantages in its own way, attempting to re-incorporate "dollars on the blockchain" into the jurisdictional framework of traditional finance.
In contrast, Tether operates outside of sovereign regulation. Although it is located in the British Virgin Islands, its business spans the globe, especially being widely adopted in emerging markets and regulatory gray areas. In regions like Latin America, the Middle East, and Southeast Asia, USDT often becomes a financial haven for people hedging against local currency depreciation and evading restrictions in capital controls. Because of this, it is often seen as a challenger to U.S. financial regulation. What further troubles the traditional banking system is that USDT can complete fund transfers without relying on channels like SWIFT or Fedwire, thereby partially weakening the U.S.'s ability to scrutinize cross-border capital flows and reducing the intermediary value of clearing giants like JPMorgan.
For JPMorgan, the existence of Tether is both a challenge and a mirror: it replicates its clearing structure, dollar endorsement logic, and global circulation network, but operates in a system it cannot directly control. From regulatory arbitrage to capital migration, from gray clearing to the blurring of financial sovereignty, Tether brings a decentralized dollar alternative that is "un-auditable, un-freezable, and un-restrictable." In this sense, Tether is the "shadow opponent" that JPMorgan cannot ignore—it does not confront it directly in the capital markets like Goldman Sachs, nor does it compete with it in asset management like BlackRock; instead, it quietly builds a parallel settlement structure equivalent to JPMorgan's in another world.
The future dominance of dollar clearing, whether it remains firmly in the hands of financial temples like JPMorgan or gradually shifts to new on-chain structures, is becoming one of the core issues in the financial game of the digital age.
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