Understanding JPMorgan Chase: The Swordbearer of Dollar Hegemony, a Temple-Level Bank, and Bitcoin's Most Stubborn Opponent

Author | Ivan Wu on Blockchain

In the Singapore payment circle, there is a thought-provoking saying: "The MPI is worth ten million, and the JPM account is 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, JPMorgan Chase 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 candidly 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 Chase. Since 2020, JPMorgan Chase has become Coinbase's core bank, a relationship that not only opened up the dollar channel for it 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 suffers from marginalization by the banking system, such cooperation is undoubtedly a rare pass.

However, JPMorgan Chase 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 mainly 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 is clearly in fundamental opposition to the dollar-centric system represented by JPMorgan Chase.

This article will revolve around this financial giant, starting from its legendary birth and expansion, tracing how it has gradually become 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 Chase?

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

John Pierpont Morgan (J.P. Morgan), born in 1837, was a typical heir of 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 century to the 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 fragmented railroad companies, and by the end of the 19th century, one-third of American railroads were under his capital control. He earned the title of "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 even more thoroughly demonstrated during the financial crisis from 1893 to 1895. At that time, the U.S. Treasury's gold reserves were about to run out, Congress's attempts to issue bonds failed, and the nation was on the brink of a collapse of its credit system. At this critical moment, Morgan united a consortium of European banks and raised 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, and from then on, a saying circulated on Wall Street that still astonishes people today: "If America were a company, then Morgan would be the CEO of that company." This was not only an acknowledgment of his financial power but also an ultimate affirmation of his operational capability—Morgan's financial strength had already surpassed the state machinery itself.

His capital operation ability reached its peak in 1901. That year, steel magnate Andrew Carnegie decided to retire, and Morgan completed the acquisition of Carnegie Steel for $480 million in cash, integrating it with several other steel companies to form U.S. Steel—the first company in human history with 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 a panic of chain bankruptcies again in 1907, and the government was once again powerless to respond, Morgan stepped up once more. He locked the major bankers of Wall Street in his home library for fourteen hours, forcing everyone to reach a joint funding agreement to stabilize the market. 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 the 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 Chase'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 Chase today occupies the "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 Chase's total assets have exceeded $30 trillion, ranking first in the U.S. and second globally only to a few state-owned banking behemoths. Such scale not only means it is a "behemoth" but also that it has become a cornerstone existence of the entire dollar financial system.

The core of JPMorgan Chase's power lies in its control over the global dollar clearing network. At the level of cross-border payments and international settlements, this bank has become an irreplaceable hub. Data shows that the amount of clearing payments processed by JPMorgan Chase daily exceeds $10 trillion, 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 Chase has built the main artery of global dollar circulation, making it impossible for countless countries' cross-border financial businesses to bypass its clearing network. This also means that controlling JPMorgan Chase equates to controlling the flow of dollars.

However, such a vast network does not come without thresholds. JPMorgan Chase's requirements for compliance and risk control 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 KYC and anti-money laundering mechanisms that can withstand scrutiny have the opportunity to become its clients. Therefore, successfully opening a JPMorgan Chase account is not only a functional convenience but also a credit pass—it symbolizes that you have received 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 Chase an existence akin to "national-level infrastructure" in the global financial system. "JPMorgan Chase to dollar finance is like the power grid and water system in a city; it is 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 the central banks of some small and medium-sized countries. JPMorgan Chase is not just a bank; it is the execution hub of the dollar world order.

III. The Swordbearer of Dollar Hegemony: How JPMorgan Chase Influences the Global Dollar System

If the Federal Reserve is the designer and rule-maker of the global dollar system, then JPMorgan Chase is the most powerful executor of this system—it not only executes the rules but also materializes and amplifies these rules through its vast network, thereby enhancing their actual impact globally. As a primary dealer in the U.S. Treasury market, JPMorgan Chase regularly participates in the Federal Reserve System's open market operations, assisting in managing short-term liquidity and undertaking a large number of U.S. Treasury issuances and distributions through its investment banking division. In this structure, JPMorgan Chase'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 Chase. The dollar settlements conducted by enterprises, institutions, and even central banks usually must go through large commercial banks in the U.S.—and JPMorgan Chase is the most critical node among them. This not only brings technical and efficiency advantages but also grants JPMorgan Chase and its home country enormous geopolitical financial power. When the U.S. imposes financial sanctions on a certain country or institution, one of the most common practices is to "cut off its dollar clearing capabilities," and JPMorgan Chase is the direct executor and amplifier of such policies. Once excluded from JPMorgan Chase's network, it means losing the right to connect with the global mainstream financial system.

Thus, for financial institutions globally, whether they can access JPMorgan Chase's network is not only a matter of efficiency and cost but also a question of the boundaries of "financial sovereignty." If a payment institution can open a JPMorgan Chase account, it means it has received the core endorsement of 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 Chase the most operationally significant power link in its chain.

At critical moments, JPMorgan Chase'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; in the 2023 collapse of Silicon Valley Bank, JPMorgan Chase 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 Chase'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 Chase is a sharp sword—also a shield against systemic collapse.

IV. JPMorgan Chase and the Crypto World: Coexistence of Cooperation and Hostility

In the crypto world, having a JPMorgan Chase 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 the context of increasingly stringent regulations and traditional banks generally holding a wait-and-see or even hostile attitude towards crypto enterprises, JPMorgan Chase's basic stance towards such clients has always been "default rejection." Therefore, when the saying "The MPI is worth ten million, and the JPM account is worth one hundred million" circulates in Singapore's industry, it reflects not only the scarcity of JPMorgan Chase's resources but also the structural dilemma the entire crypto industry faces when connecting with the traditional financial system.

The success of Coinbase is a typical example among the few "breakthrough" cases. As the most representative compliant exchange in the U.S., Coinbase's ability to smoothly access fiat channels, complete its IPO, and gain mainstream investor trust relies on a whole set of deeply integrated financial infrastructures with the banking system, with JPMorgan Chase being a key player. Since 2020, JPMorgan Chase 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 domain. 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 would not be able to provide deposit services, let alone expand our business." The supportive role of JPMorgan Chase in Coinbase's growth curve cannot be overlooked.

However, this does not mean that JPMorgan Chase has fully "accepted" the crypto industry. On the contrary, its stance has always been cautious and boundary-aware. JPMorgan Chase 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. If a company's business model involves anonymous transactions, off-chain arbitrage, or touches on areas that are "decentralized and unregulatable," JPMorgan Chase will decisively draw the line. This is not ignorance of technology but an active avoidance of institutional risks. JPMorgan Chase does not oppose technological innovation, but it is more concerned about maintaining order.

This stance of maintaining order is particularly evident in JPMorgan Chase 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," "meaningless speculative tool," and has linked it to illegal transactions and terrorism financing. Even as giants like BlackRock and Fidelity successively launch Bitcoin ETFs, and even the U.S. government begins to discuss "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 unregulated value transfer path that cryptocurrencies aim to achieve precisely bypasses the financial central structure that JPMorgan Chase relies on for survival.

Ultimately, the hostility between JPMorgan Chase 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 censorship resistance, self-custody, and permissionless innovation in the crypto network. In a sense, this game has no right or wrong but is a natural collision of two paradigms. JPMorgan Chase 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 Chase is most unwilling to see.

V. Tether and USDT: JPMorgan Chase's "Shadow Opponent"

In the traditional financial system, the cross-border flow of dollars must rely on "central banks" represented by JPMorgan Chase 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 required; 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 Chase 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 "currency network sovereignty," with Tether becoming the clearing core of this new system.

The operational logic of Tether bears a striking resemblance to JPMorgan Chase's role in the banking system. JPMorgan Chase handles cross-border dollar transactions amounting to trillions annually, relying on a comprehensive Correspondent Banking system (correspondent bank network) to establish high barriers and high trust in compliance review, clearing execution, and reserve management. Although Tether is not subject to mainstream financial regulation, it has also built a dollar flow system on the blockchain through "reserve asset custody + stablecoin issuance": global exchanges regard it as the main unit of valuation and settlement, users complete fund inflows and outflows through USDT, and on-chain protocols use it as the core of liquidity, even some gray area economic activities are settled in USDT. This makes Tether, in a sense, the "central bank of crypto dollars," or a "shadow JPMorgan Chase" operating in a system it cannot directly control.

JPMorgan Chase, of course, will not remain indifferent to this. Although CEO Dimon has a generally negative attitude towards cryptocurrencies, JPMorgan Chase'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 Chase itself, and is used exclusively for inter-client accounting clearing. More importantly, it has also 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 Chase is wary of the systemic risks posed by stablecoins, it is also absorbing their technological advantages in its own way, attempting to re-integrate "dollars on the blockchain" back into the jurisdictional framework of traditional finance.

In contrast, Tether operates outside 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 to hedge against local currency depreciation and evade restrictions in capital controls. Because of this, it is often seen as a challenger to U.S. financial regulation. What makes the traditional banking system even more headache-inducing 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 Chase.

For JPMorgan Chase, 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 an "un-auditable, un-freezable, un-restrictable" decentralized dollar alternative. In this sense, Tether is the "shadow opponent" that JPMorgan Chase cannot ignore—it does not confront it directly in capital markets like Goldman Sachs, nor does it compete with it in asset management like BlackRock; instead, it quietly builds a settlement structure equivalent to JPMorgan Chase in another parallel world.

The future dominance of dollar clearing, whether it remains firmly in the hands of financial temples like JPMorgan Chase or gradually shifts to new on-chain structures, is becoming one of the core issues in the financial game of the digital age.