Understanding JPMorgan Chase: The Sword Bearer of Dollar Hegemony, Temple-Grade Bank, and the Most Stubborn Opponent of Bitcoin

Author | Ivan Wu on Blockchain

In Singapore’s payment circle, there is a thought-provoking saying: “MPI value of ten million, JPM account worth one hundred million.” This is not an exaggerated metaphor but a true reflection of JPMorgan Chase’s position in the global financial system. For institutions attempting to operate in sensitive areas such as cross-border payments, virtual assets, and stablecoins, JPM not only serves as the main gateway to the US dollar system but also acts as a strict barrier for compliance and capability assessment.

The leading exchange in the crypto world, Coinbase, has openly stated that the key to its success is not technology, user growth, or regulatory environment, but having a strong banking partner — JPMorgan Chase. Since 2020, JPM has become Coinbase’s core bank, not only opening a USD channel but also endorsing its legitimacy in the eyes of traditional finance through compliance and reputation. In an industry often marginalized by banking systems, such a partnership is undoubtedly a rare pass.

However, JPMorgan Chase has never been friendly toward Bitcoin. Its current CEO, Jamie Dimon, has long been one of the most vocal critics of cryptocurrency. He has called Bitcoin a “fraud,” emphasizing its primary use in illegal transactions, and publicly stated he “will never buy Bitcoin.” Even as giants like BlackRock embrace Bitcoin ETFs, Dimon remains firm in his opposition. The decentralized philosophy of Bitcoin fundamentally conflicts with JPMorgan’s representation of the dollar-centric centralized system.

This article will explore JPMorgan Chase, from its legendary birth and expansion to how it has become the central executor of the USD global system, a “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 Chase?

1. The Legendary History of JPMorgan Chase: From Railroad Tsar to Financial Savior

John Pierpont Morgan, born in 1837, was a typical heir from a “golden key” banking family. But what truly cemented his legendary status in financial history was not his background but his role in reshaping the US economic system from the late 19th to early 20th century. Starting in 1871, he began large-scale consolidation of the US railroad system — at the time, the country’s most vital economic artery was on the brink of collapse due to overbuilding and mismanagement. Morgan used capital as a sword to reorganize and consolidate the fragmented railroad companies. By the late 19th century, one-third of American railroads were under his control. He earned the nickname “Railroad Tsar,” leading the industry’s revival and setting a precedent that private financial capital could reshape national infrastructure.

This ability to override state structures with private power was further demonstrated during the financial crisis of 1893–1895. At that time, the US Treasury’s gold reserves were nearly exhausted, and Congress’s attempt to issue bonds failed, pushing the country to the brink of a credit system collapse. At this critical moment, Morgan, in cooperation with European banking consortia, arranged a $65 million gold loan to the Treasury, preventing systemic default. This was a “lifeline” from private to state, and from then on, Wall Street’s phrase “If the US were a company, Morgan would be its CEO” became popular. It was a recognition of his financial strength and his ability to control the system — Morgan’s financial power had surpassed the state machinery itself.

His capital operation peaked in 1901. That year, steel magnate Andrew Carnegie decided to retire, and Morgan acquired Carnegie Steel for $480 million in cash, merging it with other steel companies to form U.S. Steel — the first enterprise in history with a market value exceeding one billion dollars. This was not only a landmark merger but also marked the formal rise of financial capital over industrialists as the highest power in the US economy. Morgan was no longer just steering railroads and banks; he had become the de facto ruler of American industrial capital.

When the New York banking system faced a chain of failures again in 1907, the government was powerless to respond, and Morgan stepped in once more. He locked the major Wall Street bankers in his library for fourteen hours, forcing a collective rescue agreement, which finally calmed the market. This event became a milestone as the last time private financial power fully led a systemic crisis response in US history — people began to realize that the fate of the nation could no longer be entrusted solely to a single banker. Six years later, the Federal Reserve was established. Morgan was not only the embodiment of the old order but also the catalyst for the birth of the new order.

2. Temple-Level Bank: JPMorgan Chase’s Position in the Modern Global Financial System

If J.P. Morgan in the early 20th century was a financial giant reshaping national economic order with personal capital, today JPMorgan Chase is a “temple” occupying the global financial system through its institutional stature. The bank is not only a symbol of Wall Street but also one of the foundational infrastructures for global capital flows. Currently, JPM’s total assets exceed $3 trillion, ranking first in the US and only behind a few state-owned giants worldwide. Such scale makes it a “behemoth,” but more importantly, it has become a pillar of the entire USD financial system.

The core of JPM’s power lies in its control over the global USD clearing network. In cross-border payments and international settlements, it has become an irreplaceable hub. Data shows that JPM processes over $10 trillion in settlement payments daily, accounting for nearly 30% of the global USD clearing market. This is not just a technical feat but also a trust endorsement from the global financial system. From ACH to Fedwire, from SWIFT to local financial infrastructures, JPM has built the arteries of global USD circulation, making cross-border financial activities of many countries dependent on its clearing network. Controlling JPM means controlling the flow of USD.

However, such a vast network is not without barriers. JPM’s standards for compliance and risk control are considered the “gold standard” worldwide. Its account opening procedures are notoriously strict, often called the “climbing ladder to heaven” in the industry. Only institutions with clear backgrounds, clean funds, and robust KYC and anti-money laundering mechanisms can become clients. Therefore, opening a JPM account is not only a functional convenience but also a credit passport — a symbol of recognition by the world’s strictest bank, and an entry into the most trusted financial circle.

This highly centralized and layered screening structure makes JPMorgan Chase akin to “national-level infrastructure” in the global financial system. “JPMorgan Chase in USD finance is like the power grid and water supply in a city — prerequisites for the operation of all modern activities.” It is the main underwriter for US Treasury bonds and a key liquidity intermediary in the Federal Reserve System. It serves not only the market but also the national will, sometimes even more influential than some central banks of small countries. JPMorgan Chase is not just a bank but the execution center of the USD world order.

3. The Sword of Dollar Hegemony: How JPMorgan Chase Influences the Global USD System

If the Federal Reserve is the designer and rule-maker of the global USD system, JPMorgan Chase is its most powerful executor — it not only enforces rules but also materializes and amplifies these rules through its extensive network, exerting real influence worldwide. As a primary dealer in the US debt market, JPM participates daily in Federal Reserve open market operations, helping manage short-term liquidity, and its investment banking division handles large-scale US debt issuance and distribution. In this framework, JPM’s role is both an operational ally of US fiscal policy and a muscle for USD influence. It not only transmits policies but also constructs the infrastructure that underpins USD hegemony.

The most direct example of this “sword-bearer” role is cross-border USD clearing. Today, almost all large-scale international USD transactions must pass through giants like JPM. Corporations, institutions, and even central banks rely on major US commercial banks for USD settlement — JPM is the most critical node. This provides technological and efficiency advantages and grants JPM and the US enormous geopolitical financial power. When the US imposes financial sanctions on a country or institution, one common method is to “cut off its USD clearing ability,” and JPM is often the direct executor and amplifier of such policies. Being excluded from JPM’s network means losing access to the global mainstream financial system.

Therefore, for global financial institutions, access to JPM’s network is not only about efficiency and costs but also about “financial sovereignty.” Opening a JPM account signifies recognition of the USD core, while exclusion likely pushes institutions to marginal markets or secondary networks. This layered structure reinforces the hierarchy of USD hegemony and makes JPM the most operationally powerful link in the chain.

At critical moments, JPM’s “systemic role” also acts as a stabilizer. During the 2008 subprime crisis, it took over Bear Stearns to help contain the crisis; in the 2023 Silicon Valley Bank collapse, JPM again stepped in to acquire First Republic Bank’s assets, becoming a key force in stabilizing market expectations. Such “white knight” actions, though driven by business motives, highlight JPM’s responsibility in the USD financial system: it is not only the top beneficiary of the利益结构 but also a guarantor of system stability. In this web woven by institutions and power, JPMorgan Chase is a sharp sword — and a shield against systemic collapse.

4. JPMorgan Chase and the Crypto World: Cooperation and Hostility Coexist

In the crypto world, having a JPMorgan Chase bank account is almost equivalent to obtaining a “ticket” into the mainstream financial system. For any institution engaged in cross-border payments, crypto asset custody, or stablecoin settlement, such an account means not only efficient USD clearing but also a mark of compliance and credibility. Especially under increasingly strict regulation and the generally cautious or hostile attitude of traditional banks toward crypto firms, JPM’s stance has always been “default rejection.” Therefore, when the Singapore industry jokes that “MPI value of ten million, JPM account worth one hundred million,” it reflects not only JPM’s resource scarcity but also the structural dilemma faced by the crypto industry in connecting with traditional finance.

Coinbase’s success is a rare “breaking the circle” case. As the most representative compliant exchange in the US, Coinbase’s ability to access fiat channels, go public, and gain mainstream investor trust relies on a deep integration with the banking system, with JPMorgan Chase playing a key role. Since 2020, JPM has provided banking services to Coinbase and Gemini, which are under strict regulatory scrutiny. This was seen as a major signal of traditional finance’s willingness to engage with crypto. Coinbase co-founder Brian Armstrong explicitly said that one of their biggest early breakthroughs was winning the cooperation of large banks. “Without bank accounts, we couldn’t provide deposit services or expand our business.” JPM’s backing is crucial in Coinbase’s growth trajectory.

However, this does not mean JPMorgan Chase has “accepted” the crypto industry. On the contrary, its stance remains cautious and boundary-conscious. JPM has an internal crypto review committee that strictly evaluates potential clients’ governance, sources of funds, and compliance risks. Only a few institutions meeting its standards can access services. More importantly, JPM’s support is usually limited to companies with deep regulatory cooperation and transparent operations. If a company’s business involves anonymous transactions, off-chain arbitrage, or touches on “decentralized and unregulatable” areas, JPM will decisively draw the line. This is not ignorance of technology but a proactive risk avoidance. JPMorgan Chase does not oppose technological innovation but prioritizes order stability.

This stance on order maintenance is especially evident in CEO Jamie Dimon. He is perhaps one of Wall Street’s most hostile figures toward Bitcoin. He has publicly criticized Bitcoin as a “scam,” a “meaningless speculative tool,” and linked it to illegal transactions and terrorism financing. Even as giants like BlackRock and Fidelity launch Bitcoin ETFs and the US government discusses “moderate regulation,” Dimon remains firm: “I will never buy Bitcoin.” His attitude is not conservative but stems from a deep understanding of the system he operates within. The peer-to-peer, permissionless, censorship-resistant transfer of value that cryptocurrencies aim for bypasses the financial central structures JPM relies on.

Ultimately, JPMorgan Chase’s hostility toward the crypto industry is not just a matter of ideology but a fundamental systemic conflict. One side is a financial giant centered on regulation and clearing networks, relying on centralized trust and state credit; the other advocates anti-censorship, self-custody, and permissionless innovation. In a sense, this game has no right or wrong but is a collision of paradigms. JPM might accept some “middle-ground” cooperation, such as regulated stablecoin issuers or on-chain payment companies, but it will never truly welcome decentralized “alternatives,” because their ultimate goal is to detach finance from the banking system — a future JPM is least willing to see.

5. Tether and USDT: JPM’s “Shadow Opponent”

In traditional finance, cross-border USD flows depend on “central banks” like JPMorgan Chase for clearing and settlement. But since the advent of stablecoins, this pattern has begun to subtly loosen. Stablecoins, especially Tether’s USDT, have built a bankless, on-chain parallel universe for USD: no bank accounts, no SWIFT, no compliance licenses needed. Users only need a blockchain address to transfer USD across borders. In this system, USD is no longer dominated by banks like JPM but is embedded in smart contracts, moving through exchanges, wallets, and DeFi protocols with high efficiency and low barriers. This change, from the crypto industry’s perspective, is almost a “sovereignty transfer” of the monetary network, with Tether becoming the core of this new settlement system.

Tether’s operational logic bears a striking resemblance to JPM’s role in the banking system. JPM handles hundreds of trillions of USD cross-border transactions annually, relying on a global Correspondent Banking network that establishes high barriers and trust. While Tether is not under mainstream financial regulation, it also creates a USD liquidity system through “reserve assets + stablecoin issuance”: exchanges treat USDT as a primary pricing and settlement unit, users transfer funds via USDT, and protocols rely on it for liquidity. Even some gray-area economic activities settle in USDT. In this sense, Tether has become a “crypto USD central bank,” or a “shadow JPM” bypassing traditional banking.

JPMorgan Chase naturally cannot ignore this. Although CEO Dimon is generally negative toward crypto, JPM’s research and tech teams have long been exploring digital dollar solutions. In 2019, JPM launched JPM Coin, a blockchain settlement token backed by JPM’s own USD reserves, designed for institutional client transfers. More importantly, JPM has initiated ONYX, a blockchain project aiming to build a decentralized platform for interbank payments. This shows that JPM, while cautious of systemic risks from stablecoins, is also adopting their technological advantages to bring “digital dollars on blockchain” back into the traditional financial framework.

In contrast, Tether operates outside sovereign regulation. Although based in the British Virgin Islands, it has a global presence, especially in emerging markets and gray regulatory zones. In Latin America, the Middle East, Southeast Asia, USDT often serves as a hedge against local currency devaluation and a way to evade capital controls. As a result, it is seen as a challenger to US financial regulation. More troubling for traditional banks is that USDT can transfer funds without SWIFT or Fedwire, weakening US control over cross-border flows and reducing the intermediary value of giants like JPM.

For JPM, Tether is both a challenge and a mirror: it replicates JPM’s clearing structure, USD backing logic, and global circulation network but operates in a system it cannot directly control. From regulatory arbitrage to fund migration, from gray-area clearing to blurred financial sovereignty, Tether offers a “decentralized USD alternative that cannot be audited, frozen, or restricted.” In this sense, Tether is JPM’s “shadow opponent” — unlike Goldman Sachs, which directly competes in capital markets, or BlackRock, which rivals in asset management, Tether operates in a parallel universe, building an equal settlement architecture.

Will future USD clearing dominance remain firmly in the hands of financial temples like JPM, or will it gradually shift to new on-chain structures? This question is becoming one of the core issues in the game of finance in the digital age.