Industry Experts

Binance: JP Morgan Coin will lead traditional institutions to adopt cryptocurrencies

A report by the research arm of the world’s largest cryptocurrency exchange, Binance, has indicated that JP Morgan Coin (JPM Coin) will lead traditional institutions to adopt cryptocurrencies.

According to the report, this will be initiated through the bank’s recently launched stable coin, JP Morgan Coin. Despite the coin having been bashed by some as not having the characteristics of a cryptocurrency, Binance Research says it will be a “stepping stone” for institutions to adopt cryptocurrencies.

As per the report, since JP Morgan Coin runs on a private blockchain:

It is very unlikely that JPM Coin will disrupt the existing stable coin industry… stable coins issued by banks are designed to serve a specific purpose and as a result, do not directly compete with the existing stable coins. Relying on private blockchains, these stable coins would only serve specific purposes within financial institutions.

Binance Research differentiates JP Morgan Coin form other stable coins already in the market since it’s not available for use by the general public. This makes it not to have a direct impact on the stable coin market.

However, if the JPM Coin was to be released to the market, the report notes, it would overshadow other coins already in the market.

The report states:

Based on JP Morgan’s position as one of the world’s largest banks, even a small portion of total assets locked as fiat collateral for JPM Coin could make the institution the largest stable coin issuer on a blockchain measured by circulating supply and total market cap.

In the past, the CEO of Abra said that private blockchains are doomed to fail since public blockchains have more potential in terms of a higher transaction per second.

Additionally, Brad Garlinghouse, Ripple’s CEO has in the past said that JP Morgan Coin “misses the point.”

Do you think JP Morgan Coin will lead institutions to adopt cryptocurrencies?

Let us know your thoughts in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

Leave a Comment

Your e-mail address will not be published. Required fields are marked *