JPMorgan’s controversial blockchain token might not be a real cryptocurrency, but researchers say it could help spark concrete crypto adoption.
JPM Coin, the dollar-backed cryptocurrency introduced a few weeks ago by the financial giant, JP Morgan, will only have a “minimal impact,” suggests Binance Research. The statement comes after many in the cryptocurrency community questioned the possible impact of the new coin on the stablecoin and XRP market.
However, a report issued yesterday by Binance Research may calm the nerves of some traders and members of the XRP Army because, after careful analysis, the Binance team concluded that in principle, the differences between JP Morgan’s cryptocurrency and XRP are so vast that both tokens could not compete directly.
The coin, the study continues, is poised to become a potential “precursor to the third generation of stablecoins,” which will target the world of traditional finance and aim to serve particular purposes and business use cases by means of private blockchain-powered tokens.
In the study’s schema, the first generation was spearheaded by stalwart coin Tether (USDT), later followed by a steady stream of “second generation” new stablecoins over the course of 2018.
JPMorgan moves up to $6 trillion in assets daily. The total market capitalization for all stablecoins is well under $3 billion. If JPM Coin represents just 1% of JPMorgan’s daily average, it more than doubles the market.