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JPMorgan warns private blockchain networks could drain Bitcoin activity

JPMorgan said tokenization, payments, and settlement on closed networks could pull activity, liquidity, and capital away from public crypto while pressuring valuations lower.

Reported · Written up by our desk · Market Structure

JPMorgan flagged Wall Street’s growing interest in private blockchains as a potential threat to Bitcoin, arguing it could shift tokenization, payments, and settlement onto closed networks.

In the warning cited by CryptoSlate, the bank said moving more activity off public networks could reduce crypto activity, liquidity, and available capital, with knock-on effects for market valuations.

CryptoSlate reports JPMorgan also pointed to the risk of hybrid public-private architectures, which it framed as potentially limiting how much value flows to open networks over time.

The bank’s view, as summarized by CryptoSlate, was that tighter stablecoin rules and Bitcoin’s relative staying power would not fully offset the broader headwind from closed-chain deployments.

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