According to a study conducted by Binance , published on March 1, exchange on the new JPM coin, the new bank backed token will make the financial institution the biggest stablecoin issuer. Here’s how the report puts it:
“Taking stock of the bank’s huge global client base as well as its $2.6 trillion balance sheet, the JPM Coin could inevitably make the financial institution the biggest stablecoin issuer on the Blockchain (based on circulating supply and total market capitalization).”
The study also revealed that the new coin by JP Morgan has the potential to become a “precursor to the stablecoin third generation.” The coin will target the traditional finance world with the aim of serving particular purposes along with business use cases. Based on the study’s schema, Tether (USDT) spearheaded the first generation of stablecoins. This was later followed by a regular stream of “second generation” stablecoins during 2018.
The research argues that the new digital token brings “minimal direct competition” to XRP in the near term.
Bitcoin (BTC) Price Today – BTC / USD
Binance Study: JPM Coin Likely to Have a Significant Material Impact
While the study agrees that JPM’s Coin may offer significant material impact regarding improving the time and cost efficiency of traditional financial services, its implications on the public stablecoin sector will be minimal in the short term.
Additionally, as a proprietary, centralized network, the coin is not likely to be tapped by banking competitors. This is because these are expected to release their own crypto tokens in future.
According to Jamie Dimon, the CEO of JPMorgan Chase, the JPM Coin could find consumer use and eventually evolve past internal use cases alone.
QuadrigaCX Update: User Wallets Have Been Empty, but Unused Since April Last Year
The Monitor (Ernst & Young) has released its third report regarding the creditor protection proceedings on behalf of Canadian exchange QuadrigaCX. The report was released on March 1.
As per the report, the Monitor has identified six crypto wallets that were primarily used to store Bitcoin (BTC). In February, the exchange filed for creditor protection following the death of Gerald Cotten, its founder. Cotten was solely responsible for the user wallets and corresponding keys. Hence, after his death, the exchange lost access to these cold wallets and corresponding keys.
The exchange’s wallets held digital assets owed to multiple creditors. Since Cotten’s passing, the exchange, the court, the Monitor (Ernst & Young) and investigators have been working on a convoluted process to determine where the user funds went.
The report issued by EY states that in the course of the investigation so far, the Monitor discovered 14 user accounts. Each of these accounts “may have been added outside the regular process by Quadriga. It would appear that the identified user accounts were created under different aliases.”
Now the Monitor is trying to secure the transaction and account balances from the platform, stored by Amazon Web Services on the cloud. All user wallets that have been discovered so far have been empty but remain unused since April of last year.
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