Of course, JP Morgan with $6 trillion daily transaction volume globally, became the first major US bank to announce the launch of new cryptocurrency, – but behind the scene, the case is quite different.
JP Morgan is Late in the Party – Signature Bank is the First Bank
The latest report from Forbes media highlighted that the 40th largest bank in the United State, ‘Signature Bank’ had already begun ‘private Ethereum Platform’ in late December 2018. However, the JPM Coin’s launch on mainstream headlines appeared on Feb 14, 2019. With this information, it’s quite clear that ‘Signature Bank is the first bank to enter the era but the bank didn’t capture the much of media attention as JP Morgan does.
Nevertheless, in late 2018, the Signature bank had created Signet, a blockchain based payment ecosystem. It uses the digital dollar, Signet. As per the reports, the Signet platform is built on a private and permissioned form of Ethereum’s blockchain’. Unlike JPM Coin which set for trial for coming months, the Signature bank is already launched it on Jan 1, 2019. Moreover what sets is unique than JP Morgan coin is ‘it has already received regulatory approval from the New York State Department of Financial Services.
Further, as Scott Shay, the co-founder, and chairman at Signature Bank elaborates;
“We’re using an ethereum blockchain within essentially our own walled garden, in that we will be maintaining the blockchain,” Said Shay. We can maintain private keys. We are refreshing the blockchain ourselves and powering the blockchain ourselves, so there’s no need for any independent miners. There certainly aren’t any, and the blockchain refreshes every 5 to 25 seconds.”
Besides the launch, the bank’s Signet platform is assisting more than 100 clients with daily volumes in millions. As mentioned in the mail (received by Forbes media) it has noted that bank sometimes recording tens of millions of dollars. As such, ‘American PowerNet (APN – which is the US’s largest power supply company) is one leading name in Signet’s 100 client that employs a blockchain based platform developed by Signature Bank.
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com