Latam Insights: JPMorgan's JPM Coin Pilot, Compliance Advances

Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this edition, Argentinian banks start a JPM Coin-based interbank settlement pilot, TRM Labs underscores compliance advances, and Milei backpedals on dollarization.

Key Takeaways:

• CMF tests JPM Coin in phase one trials to slash settlement times, paving the way for future crypto banking.
• TRM Labs warns stablecoins fund 95% of illicit Latam inflows, triggering an impending wave of AML laws next.
• Javier Milei halts his dollarization plan as locals reject the USD, forcing a pivot in future policy.

Local Banks Pilot JPMorgan’s JPM Coin in Argentina

Argentina is slowly paving the way to allow banking institutions to leverage and offer crypto services to their customers.

According to local media, a group of private banks would be involved in limited trials using JPM Coin, a deposit token issued by JPMorgan, to improve interbank settlement processes between participating institutions.

Maximiliano Cohn, CIO of CMF, one of the banks participating in these tests to be part of the minimum viable product (MVP) of JPM Coin in Argentina, told Iproup that these operations are being executed without money and using traditional settlement methods first, but applying onchain technology for their registry.

Cohn also explained that during the first phase of this pilot, banks are working to integrate available services to “verify improvements in the settlement and interbank reconciliation times of the integrated banks.”

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TRM Labs: While Risks Remain, Compliance Advances in Latam

Crypto regulations are advancing internationally, and Latam is not an exception, even with numerous documented threats. According to TRM Labs, a blockchain intelligence firm, regulations are coming to make cryptocurrency transactions and flows more secure in the region.

In a recent report, TRM Labs disclosed that stablecoins have become the dominant payment rails across Latam, accounting for 95% of inflows to sanctioned entities globally in a region that, due to its economic traits, is open to the adoption of these new technologies.

TRM Labs states that the threats are well-documented in the region, including flows linked to the Sinaloa Cartel, leveraging local brokers and P2P exchanges to launder funds using Chinese organizations as intermediaries to process over $103 billion in 2025 alone.

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Milei Walks Back on Dollarization: ‘People Don’t Want It’

President Javier Milei has explained why the process of dollarizing Argentina might be more complex than expected, as it has hit a solid roadblock.

Milei, who campaigned and won the Argentinian presidency on the promise of adopting the U.S. dollar as fiat currency, ending the peso, and disbanding the central bank, acknowledged a newfound obstacle to his plans.

During a recent TV interview, Milei highlighted that the main issue when dollarizing the country was the lack of adoption by Argentinians, who have failed to embrace the greenback and continue to use the Argentinian peso.

“People don’t want it,” said Milei, referring to using the U.S. dollar instead of the Argentinian peso.

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