The research division of the Binance cryptocurrency exchange prepared a report on JPMorgan Chase, the recently announced stablebusiness of JPMorgan Chase, which, according to analysts, “will enter into direct competition” with XRP, issued by Ripple, in the minimal volume.
According to Binance Research, a pilot project of JPM Coin will initially focus on transactions between financial institutions and is based on the Quorum blockchain, which is a variation of Ethereum with limited access.
In the context of interbank settlement, the JPM Coin will not overlap with XRP, since the latter serves as an “intermediate currency between Fiat / cryptocurrency and any fiduciary product,” while the former is used in strictly defined scenarios.
Binance Research claims that JPMorgan Chase, which has assets of $ 2.6 trillion under its management, “may become the largest issuer of steakbloin on the blockchain in the context of the amount of coins in circulation and total market capitalization.”
JPM Coin also has all the chances to take on the role of a “prototype of third-generation steakblocks,” focused on the world of traditional finance and meeting certain business needs through a blockchain with limited access, adds Binance Research. According to analysts, Tether is a prominent representative of the first generation of stableblocks, which in 2018 began to compete with a whole series of “second generation” adjustable coins.
JPMorgan cryptocurrency, in turn, can have a significant impact on the cost and speed of calculations in the field of traditional financial services, but in the short term, it will not pose a threat to the public market steylcoins.
“Large banks and financial organizations have a certain set of advantages in the release of steablocoins secured by Fiat. However, such offers will not replace liquid public banknotes available for public sale in the near future, since they are based on closed type blockchains, ”adds Binance Research.
In addition, the centralized cryptocurrency developed by JPMorgan is unlikely to be picked up by other banking institutions of a comparable size, which in the future may issue their own stablebcoins, analysts conclude.
