What’s going on with JP Morgan?
Analysis channel BitBoy Crypto has recently launched a new video discussing Ripple’s (XRP) potential competitors. On September 8, Bloomberg published a report citing that financial giant JPMorgan is releasing a blockchain-based token for faster cross-border deposits and settlements.
While the leading financial firm awaits approval from US regulators, the BitBoy hosts predict that the new token, facilitating transactions across the banking sector, will give close competition to XRP. The crypto community on Twitter is also raising questions about XRP’s next move.
🚀 J.P. Morgan is reshaping finance with a revolutionary blockchain deposit token. The big question: Could #Ripple’s #XRP be the catalyst for this trillion-dollar market opportunity? 📷 #JPMorgan
Retweet, like and follow me for more exciting Ripple news! 👇👇👇 pic.twitter.com/2n9LNniFZH— Collin Brown (@CollinBrownXRP) September 8, 2023
Consequently, BitBoy’s video delves into the BRICS countries’ “de-dollarization efforts,” which threaten the global reserve status of the U.S. dollar due to the increased use of local currencies for trade settlements. JP Morgan’s analysis titled “De-dollarization: Is the U.S. dollar losing its dominance?” forecasted the Chinese Yuan as the only contender against the US Dollar.
While the video hosts agree with JP Morgan’s report, they argue that the BRIC alliances are yet to develop stronger relationships. For instance, India and China are currently “in a land war, shooting guns at each other.”
Lastly, the video explores recent data published by the crypto monitoring platform Kaiko Data, highlighting XRP as the strongest altcoin in the market. XRP is actively driving trading activities in the market with an average trading volume of $462 million, recorded in August. Kaiko Data noted:
Despite its recent pullback, XRP saw far stronger trading activity relative to other altcoins. Its average trade volume was $462mn last month, four times higher than the next largest altcoins by trade volume.
Meanwhile, on Friday the XRP community was stirred with excitement as Ripple’s CTO David Schwartz revealed his favorite feature on the XRPL, while singling out the XLS-30 Automated Market Maker (AMM) as the standout feature on the company’s smart contract platform.
Is XRP a good investment?
The XRP consensus protocol offers swift, cost-effective transactions with minimal energy consumption, making it one of the most environmentally conscious cryptocurrencies. In contrast, Bitcoin struggles as an efficient medium for everyday transactions.
Ripple’s native token, XRP, stands as one of the largest cryptocurrencies globally. Designed for banks to facilitate seamless cross-border value transfers, XRP typically requires just a smartphone and a modest initial deposit for investment. Back in 2012, Ripple introduced a token supply of 100 billion XRP, initially priced at approximately $0.005. However, its value remained relatively stable until the remarkable crypto industry boom of 2017. Although it performed well in 2018, XRP was among the poorest performers among the top crypto assets in 2019.
Despite being classified as an altcoin, XRP holds a reputable and well-established position, consistently ranking among the top five cryptocurrencies. When considering investments in other digital currencies, XRP can serve as a valuable hedging tool. The barriers to entry for XRP investments are notably low in the cryptocurrency sphere.
For individuals seeking to profit from Ripple, the most straightforward method involves acquiring XRP directly. Trading XRP proves to be an effective way to capitalize on its potential. Platforms like PrimeXBT have successfully lured traditional investors into the cryptocurrency realm while remaining accessible to newcomers. Notably, trading products such as XRP futures contracts enable shorting and leveraging, rendering them a prominent avenue for XRP investments. Evaluating Ripple’s recent history in the context of the last few years can provide insights into its potential as an investment in 2021.
JP Morgan’s plan for cryptocurrency?
JPMorgan (JPM) is exploring avenues to enable decentralized finance (DeFi) developers to harness the yield-generating potential of non-crypto assets, signaling a significant step towards integrating traditional financial assets into the world of DeFi.
Speaking at Consensus 2022 in Austin, Texas, Tyrone Lobban, head of Onyx Digital Assets at JPMorgan, provided insights into the bank’s ambitious plans for institutional-grade DeFi. He emphasized the substantial value locked in tokenized assets that could soon come into play.
Lobban explained, “Over time, we think tokenizing U.S. Treasuries or money market fund shares, for example, means these could all potentially be used as collateral in DeFi pools. The overall goal is to bring these trillions of dollars of assets into DeFi, so that we can use these new mechanisms for trading, borrowing, lending, but with the scale of institutional assets.”
Institutional DeFi often involves incorporating know-your-customer (KYC) regulations into the typically permissionless DeFi lending pools. Such developments have already started to emerge in projects like Aave Arc and a recent initiative involving Siam Commercial Bank and Compound Treasury.
However, JPMorgan’s plans to tokenize traditional assets suggest a broader scale. Onyx Digital Assets envisions two complementary aspects in realizing bank-grade DeFi, Lobban explained.
One aspect revolves around JPMorgan’s blockchain-based collateral settlement system, recently expanded to include tokenized versions of BlackRock’s money market fund shares. These mutual funds invest in cash and highly liquid short-term debt instruments. Notably, this application on the Onyx Digital Assets blockchain, settled in JPM Coin, the bank’s in-house digital token, has already facilitated $350 billion in trading volume, according to Lobban.
