JPMorgan's Stablecoin To Not Be Competitor To XRP Token – Report
The specialists of the analytical department at Binance presented a study on the official website in which they concluded that JPM Coin will not become a competitor to Ripple's XRP token on the crypto market in the near future.
JPMorgan, one of the leading US banks, announced the creation of JPM Coin, its own dollar-pegged stablecoin, in mid-February 2019.
Binance analysts state that JPM Coin was created mainly for trading between banks, and the XRP token is like intermediate between fiat money and cryptocurrency. According to experts of the exchange, XRP is more open compared to JPM Coin.
The JPMorgan's stablecoin has a great potential of resources in the amount exceeding $2.5 trillion; in terms of capitalization, JPM Coin has a chance to surpass Tether and take the first place among competitors.
The digital asset of the American bank has the features of a new, third generation of stablecoins that are focused on the market of conventional finance and perform their tasks in it. The first was presented by Tether, the second is a wave of stablecoins, created in 2018.
The study states that traditional financial transactions will cost less and take much less time with JPM Coin, although its influence among stablecoins will be insignificant yet.
Binance experts predict that other banks will not use JPM Coin but will develop their own stablecoins.