“This is a huge slap in the face for Ripple. Ripple’s target market is cross-border payments and remittances and now JPMorgan’s effort is a direct threat,” said Shaughnessy.
Ripple has claimed to have partnerships with over 200 banks including the likes of Standard Chartered and Mitsubishi UFJ Financial Group Inc. and is working on replacing Swift, a popular traditional network used by banks. But now the financial giant JPMorgan has entered the picture that moves over $5 trillion in wholesale payments each day.
Travis Kling, the Los Angeles-based founder of crypto hedge fund Ikigai Asset Management told to Bloomberg:
“JPM’s project is much more evolutionary than revolutionary — it is utilizing a private, permissioned blockchain technology called Quorum, which is much closer to a Google Sheet than a Bitcoin. The project is clearly competing directly with Ripple Labs and their centralized cryptocurrency XRP,”
Meanwhile, Ripple CEO Brad Garlinghouse took to Twitter to share,
Crypto industry experts say it is not a cryptocurrency
Anthony Pompliano said, “The most popular token for money laundering this year will be JPM Coin.”
However, the fact that JPM Coin is pegged to a dollar while XRP like other digital assets is susceptible to volatility, according to Shaughnessy works in JPM Coin’s favour.
“The JPM Coin is a stable coin whereas XRP is anything but stable. That’s going to be a very contentious point for banks who don’t want the currency in which they make payments to be volatile.”