TLDR
- Strategy’s Bitcoin sales are not the main structural risks facing Bitcoin, JPMorgan analysts say
- The biggest threat is blockchain adoption that goes beyond public networks like Bitcoin and Ethereum
- Banks prefer private, permissioned blockchains for identity verification, privacy, and regulatory compliance
- Tokenized bank deposits could reduce demand for public blockchain-based stablecoins
- The $50 billion real-world asset tokenization market may shift toward private infrastructure
The strategy’s bitcoin sales have worried some investors, but JP Morgan analysts say that’s not what bitcoin holders should worry about.
🚨 Latest: JPMorgan Says Bitcoin’s Biggest Risk Is Not Strategic, But Private Blockchain
JPMorgan says the biggest risk to Bitcoin is not Strategy’s massive holdings but permissioned private blockchains like its Kinexys platform, which has already processed $4 trillion… pic.twitter.com/Ii6aifsVxp
— Currency Bureau (@coinbureau) July 9, 2026
In a note to clients, analysts led by managing director Nikolaos Panigirzoglou said the real risk comes from traditional blockchain systems for building finance that do not use public networks such as Bitcoin Or Ethereum.
If tokenization, payments, and settlements move to private, permissioned infrastructure, public blockchains may see slower activity, reduced liquidity, and weaker capital flows.
“We do not see the strategy as the main structural threat to Bitcoin,” the analysts wrote. The concern, they said, is that institutional blockchain adoption is bypassing public crypto networks entirely.
The strategy holds about 4% of the total Bitcoin in circulation. Its official Bitcoin monetization program has provided some two-way flow to the market. JPMorgan acknowledged that this could create cyclical selling pressure, but described it as a secondary issue.
Why do banks choose private blockchains?
Organizations gravitate toward permissioned blockchains because they provide privacy controls, KYC compliance, legal accountability, and regulatory certainty—features that public blockchains do not readily provide.
JPMorgan pointed to its own platform, Kinexis, as an example. The authorized system has processed over $4 trillion in cumulative transaction volume for institutional customers.
The Bank for International Settlements also warned against using public blockchains for systemically important financial infrastructure. The Bank for International Settlements has pushed into permissible consolidated ledgers instead.
Banks are developing token deposits – digital versions of bank deposits that fall within existing banking regulation and deposit insurance frameworks. If widely adopted, it may reduce the need for stablecoins in institutional payments.
SWIFT’s blockchain initiative and central bank digital currency projects such as the digital euro and digital yuan could further promote regulated alternatives.
Real-world asset tokenization is at a crossroads
The tokenized real assets market is currently worth around $50 billion. Meaningful Share is hosted on EthereumBut JPMorgan said this likely reflects early experiences.
As enterprise use grows, issuance, custody, and settlement can increasingly move to private infrastructure that better meets identity, confidentiality, and governance requirements.
Public blockchains may still be used for distribution and limited secondary trading, but they may become less centralized over time.
Analysts also noted that DTCC is developing tokenization workflows on permissioned infrastructure, while Securitize has issued token assets on Solana and Avalanche through a regulated platform.
Even if the Clarity Act is passed later this year, JPMorgan said it may not resolve these structural risks. The legislation could actually help banks issue token deposits faster, further strengthening their position.
Analysts said their forecasts could change if public and private chains develop side by side, stablecoins grow under clearer rules, or bitcoin continues to trade primarily as a store of value.
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