New Binance Research Comments on Ripple’s XRP Competition with JPM Coin from JPMorgan Bank


Binance’s research wing recently published a detailed study regarding JPMorgan Chase’s newly announced stablecoin — the JPM token. As per the study, the intrinsic purpose of the the digital coin is to serve as a medium of exchange within JP Morgan’s native financial channels rather than provide direct competition to Ripple's XRP token.

For those of our readers who may not remember, JPMorgan Chase had announced the launch of its above mentioned crypto offering early last month.

As with any stablecoin offering, the JPM token will have its value pegged to the US Dollar in a ratio of 1:1.

More about the Study

When looked at closely, we can see that Binance’s newly released research study states that the JPM project will primarily focus on things such as:

  • Economic settlements
  • Native value transfer between financial institutions associated with JP Morgan

All of the transactions will be carried out via a private, permissioned blockchain platform called Quorum — which is an ETH hard-fork.

When talking about inter-bank settlements, JPM Coin will probably not go head to head with the XRP token — since the Ripple based offering’s prime purpose (from its very inception) has been to serve as a multi-bank “mediator currency between both fiat / crypto currencies and any fiduciary product”.

Other Key Takeaways from the Report

  • After factoring in JP Morgan’s $2.6 trillion balance sheet as well as its massive core-clientele, the Binance research team feels as though the JPM coin could very well become one of the largest stablecoin offerings in the world by the end of this year.
  • Since the JPM coin is designed to primarily target the world of traditional finance, it can help serve “particular purposes and business use cases” via the deployment of other private blockchain-based digital currencies.
  • The study also notes that JPM coin could have a “significant material impact” when it comes to maximizing the cost and time efficiency of traditional financial services.

Final Take

Owing to its centralized network, JPM Coin will most likely never be used by other banking giants. However, it may very well provide other institutions with the impetus to launch their very own digital tokens in the future.

“Large banks and financial institutions […] have a distinct set of advantages in issuing fiat-collateralized stablecoins, but these offerings will not displace liquid, publicly traded stablecoins in the near-term given their closed ecosystems built on private blockchains.”

In a recent interview with Jamie Dimon, CEO of JP Morgan, he went on record to state that in the coming months, the use cases for JPM coin could very well expand beyond the realms of traditional finance.

Last but not least, it is also worth remembering that many “insider sources associated with Facebook” claim that the social media juggernaut is currently in the process of developing its very own fiat-collateralized crypto asset.

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