Is JPMorgan going to enter the stablecoin market?
This is something that would make sense. After all, the bank does own Chase, one of the larger commercial banks in the United States.
It is a situation which is further fueled by a recent trademark the institution recently made.
We are on the brink of a massive explosion in the stablecoin market. It is my view that most every major financial institution will enter the fray. Really, this will be akin to having a business without a website. Any major bank operating without a stablecoin will be in the dark ages.
As stated in other articles, competition will be fierce. I think we will see a slew of technology companies looking to get involved also. The present construction of the GENIUS Act means that, in most cases, waivers are required. This could stall the entry of some of these companies.
It also provides a head start for the financial institutions.
JPMorgan: Issuing JPMD Stablecoin
JPMorgan is no stranger to the cryptocurrency industry. In fact, it was one of the forerunners in the stablecoin market.
The company brought out the JPM coin back in 2019. It was highly successful, crossing over $1 billion in daily transactions.
Many people are not familiar with this since, unlike USDC or USDT, it is not for average individuals. JPMorgan brought it out for institutions, to settle transactions among themselves. It operates on a network that JPMorgan designed, interacting with other banks involved in the consortium.
We now have some insight into the potential of JPMorgan getting into the "retail" end of things.
A new filing from the US Patent and Trademark Office suggests that JPMorgan may be launching a stablecoin. The trademark filing names this product JPMD but doesn’t provide many details.
Of course, a filing does not necessarily equate to a product reaching market. Companies file trademarks frequently without ever using them. For this reason, cannot conclusive state that the bank is going down this path.
The filing also does not provide much information.
Unfortunately, a closer look at the paperwork doesn’t provide a lot of details. JPMorgan’s application does not use the word “stablecoin,” referring only to concepts like “payment tokens” and “blockchain-enabled currency.”
Other relevant terms include “digital asset trading, exchange, transfer and payment services, electronic fund transfers, securities brokerage, real-time token trading, and custody services.”
A Bit of Logic
Whatever one thinks of Jamie Dimon, nobody can doubt that he is a very smart leader. This means he is not going to have JPMorgan left behind.
Stablecoins are garnering a lot of attention, with many institutions and companies lining up to get involved. We already have Tether and Circle operating with billions of coins on the market. Then we have the recent reports that both Walmart and Amazon are looking into issuing stablecoins. These are two of the biggest retail outlets in the world.
Major institutions like Bank of America are pursuing different opportunities. Finally, Mark Zuckerberg was coy about Meta's plans but logic tells us most Big Tech companies will bring stablecoins to their platforms. The only question is who is behind the issuance.
Lining all this up, JPMorgan cannot be left out of the game. While the number of accounts are not publicly released, Chase has the largest percentage of total US deposits, coming in over 16%.
The fact the filing refers to payments and blockchain could lead us to the conclusion this is a stablecoin.
Dimon has always been a fan of blockchain. He is also an opponent of Bitcoin, a speculation asset that lures in profit seekers. For this reason, the idea of Chase going down that path, at this time, seems unlikely. Stablecoins are the rage because market share is at stake. Dimon more than likely understands this better than most.
This is not going to be the last rumor we hear regarding a major bank and stablecoins. In fact, with the GENIUS Act expected to be voted upon this week, the rumblings could accelerate as soon as next week if it passes.
Banks see a major opportunity here along with a threat to their existing model. JPMorgan will not miss out on what is taking place.