Woofun AI reports that JPMorgan identifies the migration of tokenization, payments, and settlement to private blockchains as a significant threat to Bitcoin, potentially surpassing the impact of Strategy’s BTC sales. The bank warns that closed networks could siphon activity, liquidity, and capital from the broader crypto ecosystem, leading to reduced valuations.

JPMorgan notes that while hybrid systems and stablecoin regulations pose challenges, Bitcoin retains value as a scarce asset outside institutional control. Unlike permissioned chains where banks can freeze balances or exclude wallets, Bitcoin operates independently of any single entity. This distinction reinforces Bitcoin’s narrative as a neutral reserve asset, contrasting with bank-mediated digital rails that prioritize compliance over open access.