Binance Research stated in one of their latest publications that the new JPMorgan token can in many ways push cryptocurrency and blockchain towards mass adoption, given the fact that JPMorgan is one of the largest financial institutions with 6 trillion dollars in assets on daily basis.
However, JPMorgan is less likely to affect the stable coin market with their token, as the upcoming token is not designed to match the philosophy of crypto assets as we know – instead, the stable coin made by JPMorgan will rest on a private blockchain network and it represents a permissioned blockchain environment.
Nevertheless, Binance Research sees the potential of mass adoption tied directly to the upcoming token that is said to be fairly different than an average ICO.
JPMorgan Token Won’t Be Competing with the Stable Coin Market
Binance claims that JPMorgan is able to raise awareness on the matter of blockchain and crypto, even though the upcoming JPM stable coin won’t be entering an ICO presale or sale unlike other digital assets in the cryptocurrency market.
That means that the token won’t be available for public offering with a great possibility that the token will be used internally and for JPMorgan’s clients only.
As concluded by Binance Research, the arrival of the third generation of stable coins may as well raise the awareness of blockchain, representing a stepping stone for cryptocurrency mass adoption in the long run, despite the fact that the token will be running on a private blockchain.
Furthermore, it is very unlikely that JPMorgan is up for disrupting the stable coin market as the token will not be issued for the public in form of ICO.
While JPMorgan is becoming the first bank in the United States to have its own cryptocurrency, Brad Garlinghouse, the CEO of Ripple, claims that JPM is missing the point regarding blockchain and crypto, adding that introducing a closed network today is “like launching AOL after Netscape’s IPO. 2 years later, and bank coins still aren’t the answer”.