It looks like stable coins are becoming the Tamagotchi's of today with big hitter J.P. Morgan leading the way for banks to release their own digital coins pegged to the US dollar.
The US Dollar Coin (USDC), now readily available on the Dragon Exchange, is a fantastic currency to hold and banks have slowly recognised the potential of having a stable coin of their own to use in institutional transactions. USDC is allowing traders to seize market opportunities through an extremely useful inroad between fiat and digital currencies combined with the ability to move funds much faster than bank transfers.
Like the collectable Tamagotchi, now enjoying a resurgence and delighting a new generation following a colourful upgrade and re-release, stablecoins may just have found their own new audience. A whole host of new customers will be attracted to holding a stable fiat token that allows them to realise profit and loss, without losing the ability to trade at a moment's notice.
Earlier this year, J.P. Morgan became the first bank to create and successfully test its own digital coin that represents the US dollar and with a massive internal budget reputed to be as large as $10bn per year expect to see them making more noise in the crypto sphere in the coming months.
CEO, Jamie Dimon once called Bitcoin a 'fraud', but with the company moving $ trillion's around the world each day they soon recognised the wide-range of benefits that blockchain would bring.
After a series of investments and acquisitions in InvestCloud, WePay, a B2B payments technology company, and a $500m purchase of healthcare payment company Instamed they revealed plans for a 'fintech campus' in Silicon Valley.
The JPM Coin uses blockchain technology to enable transfers of payments between institutions and always has a value of the equivalent amount in US dollars and as payments are almost instantaneous settlement times are drastically reduced.
Institutions are waking up to blockchain, and the JPM Coin seeking to gain the upper hand over its competitors by bypassing interbank networks to transfer tokenised fiat in what you could say is a perfect demonstration of Ethereum's core benefits for the finance and banking industry.
As Ethereum offers the ability to control privacy at the macro level, J.P Morgan can control who joins their enterprise level blockchain forming private consortiums via the use of the Quorum blockchain which is a private iteration of open source Ethereum.
As the stablecoin market has unfolded, everybody from industry right down to the person on the street has come to realise the value that blockchain and the new range of digital assets can provide.