The newest cryptocurrency on the block has been used in just one trial transaction and it’s already being hailed as a game changer for digital assets.
JPM Coin, a so-called stable coin JPMorgan Chase & Co. plans for its clients to use in cross-border payments, is a direct threat to one of the most visible blockchain companies, Ripple, and the digital currency used in its products, according to Tom Shaughnessy, principal at Delphi Digital, a crypto research boutique in New York. XRP, which can be used to facilitate faster, lower cost international payments, is the third most valuable cryptocurrency by market value.
Ripple has made a name for itself with grand ambitions of replacing the Swift network used by banks, individuals and businesses to send and receive money. In JPMorgan it meets a challenger who moves more than $5 trillion in wholesale payments each day, meaning even a small experiment from the banking giant could have a big impact.
“This is a huge slap in the face for Ripple,’’ said Shaughnessy. “Ripple’s target market is cross-border payments and remittances and now JPMorgan’s effort is a direct threat.’’