JPM coin is one of the few crypto assets that you can’t find on a digital asset exchange- at least for now. The coin is native to the United States of America where most of its users are based.
You must have tried to find the full meaning of the abbreviation ‘JPM’. Your guess is quite right when you come up with JPMorgan. The American-based company, JPMorgan Chase & Co. created this digital currency.
Just like every other digital currency, the JPM coin has its unique characters which make it another fine asset to hold in the crypto space.
In this post, you will learn what JPM Coin is, how it works, how and who to use it.
What is JPM Coin?
JPM Coin is primarily a tool to help instantly transfer funds between some of JPMorgan’s clients. JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company.
As of September 30, 2021, JPMorgan Chase is the largest bank in the United States, the world’s largest bank by market capitalization, and the fifth-largest bank in the world in terms of total assets, with total assets of US$3.758 trillion.
The company announced the creation of JPM Coin, a digital token representing a fiat currency in February 2019. It was announced as a digital coin designed to make instantaneous payments using blockchain technology.
The coin is designed to enable the instantaneous transfer of value between parties that hold accounts in the bank. The JPM coin is categorized as a Stablecoin as it is pegged 1:1 to the US dollar. It runs on the Quorum Blockchain, a network J.P. Morgan internally developed to be a private version of the Ethereum network.
The coin can only be used for business-to-business money movement flows as it is in it’s testing stage. This means that individuals who aren’t client of the bank can’t use it for now.
JPM Coin
How To Use JPM Coin
As stated earlier, the JPM coin can only be used by JPMorgan Chase & Co. customers. This means that you must have an account with the American multinational investment bank to use it.
Here’s how to clients/customers of JPMorgan Chase & Co. can make use of the JPM coin. The steps are listed below
1. A client deposits a sum in a particular account and receives corresponding JPM Coins.
2. Next, these coins can be used to facilitate transactions across a blockchain network and with other JPMorgan clients.
3. Finally, clients may redeem their JPM Coins with the bank to receive U.S. dollars at any time.
As the JPM coin is run on a blockchain (Quorum), it processes transactions much faster than the traditional process of payment.
Why JPM Coin?
Many have questioned if the JPM coin is really cryptocurrency despite being announced as a stablecoin. Although run on a blockchain, the coin is still verified by the bank for transaction (crypto doesn’t rely on any central authority).
Its private and commission nature make many in the crypto community to state that it doesn’t meet the criteria of a cryptocurrency. Additionally, there are questions regarding whether the coin is a necessity because banks already process payments in a similar manner.
The project is not without supporters as it is seen as the answer to the SWIFT payment system, featuring much faster settlement times, smaller costs as well as reduced error margins.
To answer the questions about its legitimacy as a crypto asset, J.P Morgan created a new arm of blockchain business, ‘Onyx’, that serves as the firm’s main blockchain and digital currency efforts.
Any Difference Between JPM Coin & Other Stablecoins?
Just like every other stablecoins, JPM coin is pegged at 1:1 to the US dollar. It doesn’t exhibit volatility like several crypto assets. With this similarities, are there differences between this coin and other coins like USDT, USDC & BUSD? Yes, there are differences.
Here are some of the major differences between JPM coins and other stablecoins. They ae listed below
1. Most stablecoins are open access and available to the public. On the other hand, JPM Coin will only be available to specific JPMorgan clients with proper permissions.
2. JPM Coin is designed to facilitate the transfer of funds, while most stablecoins are seen as investment tools.
3. JPM Coin will always be redeemable in fiat currency held by JPMorgan. That makes it much more transparent than many stablecoins, such as Tether.
Where To Buy JPM Coin
JPM Coin runs on a privately commissioned blockchain and is currently only available to a small number of institutional clients at the multi-national bank. This means that you can’t find this coin on digital asset exchanges as you normally would for blockchain-based digital currencies.
If you’re looking to purchase JPM Coin as an investment, you are totally on the wrong path. Although it’s price will not go through fluctuations of price as seen with many tokens on the market, it can be purchased to facilitate transfer of funds.
Top 3 Stablecoins Considered as Cryptocurrency
Stablecoins are popular in the crypto space as they are not concerned with the volatility nature of other tokens. As JPM coin has been questioned as a crypto asset, here are other stablecoins that can be used for crypto investment.
1. Tether (USDT)
Tether (USDT) is the most popular and largest Stablecoin. It was launched as ‘Realcoin’ in 2014. Tether is always said to be worth one US dollar (its value is pegged to the USD). Its system allows users to make transactions from other cryptos back to the USD very fast and easy. Tether is widely used in that it changes more hands in the cause of a single day than its entire market capitalization. Its current market value is $73.5 billion.
2. USD Coin (USDC)
This is a Stablecoin launched in 2018 by the Coinbase crypto exchange. It has its supply limited by its dollar reserves. The USD coin is accepted by most large exchanges. It also has increasing usage in decentralized finance (DeFi), DApps, and gaming. Its current market value is $34.35 billion.
3. Binance USD (BUSD)
BUSD was launched in 2019 by the world’s largest exchange, Binance. Its supply is limited by dollar reserves that are audited monthly. Users converting fiat currencies/cryptocurrencies to BUSD get to use Binance exchange services at zero fees. There is also the use of DeFi services that can earn extra. The current market value is $13.54 billion.
Conclusion
Currently, JPM Coin can only be used to facilitate payments between institutional clients of JPMorgan Chase & Co. Although it is regarded as a stablecoin, it is quite different as it can’t be used for crypto investment-at least for now.
If you’ll need to buy the number one stablecoin today, USDT, Prestmit is a top place to visit for you. The platform gives good rate to buy/sell USDT as well as other crypto assets like Bitcoin, Dogecoin, and Litecoin.
Also Read– How To Sell USDT For Naira
