Binance: JPMorgan's steablocoin will not compete with the XRP token
The research division of the largest cryptobirge Binance has published a report stating that in the near future JPMorgan's steblecoin will not be able to compete with Ripple's XRP token.
Analysts at Binance Research note that the recently introduced JPM Coin is primarily intended for settlements between financial institutions. It was developed on the basis of the Quorum private blockchain. The latter is based on the public protocol of Ethereum, however, it also involved evidence technology with zero disclosure.
In turn, XRP is positioned as an "intermediary between Fiat and cryptocurrency." The Ripple solution seems to Binance researchers to be somewhat more open compared to JPM Coin.
Nevertheless, JPMorgan has enormous resources - its assets amount to about $ 2.6 trillion. Thus, it can become “the largest issuer of steyblcoin on the blockchain.” At the same time, JPM Coin may become a champion in its niche in terms of market capitalization.
Moreover, the coin of the American financial holding is a kind of “forerunner of the third generation of stablecocks,” focused on the world of traditional finance and solving a certain range of tasks. The first generation of stablecoin Binance researchers attributed the tokenized US dollar Tether (USDT). The second generation includes the so-called “new stablebcoins”, which appeared mainly in 2018.
Also, researchers are convinced that JPM Coin can significantly improve the efficiency of traditional financial services by making them faster and cheaper. However, the JPMorgan coin will have a minimal impact on the market of steyblockcoins, at least in the short term.
“Large banks and other financial institutions have certain advantages in the production of steyabcoin, provided by Fiat. However, taking into account their closed ecosystems based on private blockchains, such proposals will not force out liquid and publicly traded steakbloins from the market in the near future, ”Binance Research believes.
Among other things, analysts are convinced that JPMorgan competitors are unlikely to use JPM Coin, which is a centralized and proprietary currency, in their operations. Instead, other banks may issue their own coins.
Recall that this month, the Japanese financial corporation Mizuho is going to launch for mass use the cryptocurrency tied to the yen rate.
