JPMorgan launches its own crypto coin, putting Ripple’s relevance in question

The newest cryptocurrency on the block has been used in just one trial transaction and it’s already being hailed as a game changer for digital assets.

JPM Coin, a so-called stable coin JPMorgan Chase & Co. plans for its clients to use in cross-border payments, is a direct threat to one of the most visible blockchain companies, Ripple, and the digital currency used in its products, according to Tom Shaughnessy, principal at Delphi Digital, a crypto research boutique in New York. XRP, which can be used to facilitate faster, lower cost international payments, is the third most valuable cryptocurrency by market value at about $12.6 billion.

Ripple has made a name for itself with grand ambitions of replacing the Swift network used by banks, individuals and businesses to send and receive money. In JPMorgan it meets a challenger who moves more than $5 trillion in wholesale payments each day, meaning even a small experiment from the banking giant could have a big impact.

“This is a huge slap in the face for Ripple,’’ said Shaughnessy. “Ripple’s target market is cross-border payments and remittances and now JPMorgan’s effort is a direct threat.’’

Brad Garlinghouse, Ripple’s chief executive, downplayed the impact.

“As predicted, banks are changing their tune on…

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