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Can JPM Coin Disrupt the Existing Stablecoin Market

By: Binance

Published: 2019-03-01

  • Fiat-collateralized stablecoins have become increasingly popular in cryptoasset markets as they combine the functions of a blockchain, such as transparency and speed, without the inherent volatility risk of bitcoin and other cryptocurrencies.
  • The primary business model of fiat-collateralized stablecoin issuers is generating returns through lending collateral in addition to issuance / redemption fees.
  • JPM Coin marks the first experiment of a new type of stablecoin that would rely on private blockchains, marking a transition from a interest-collecting business model to one that is targeted at improving internal processes (e.g. clearing and settlement).
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