JPM Coin is not the first bank crypto: "private" ETH was first, says Forbes

22 Feb, 2019 | Updated: 22 Feb, 2019
by Alberto Arnaldo
News
JPM Coin is not the first bank crypto: private ETH was first, says Forbes

One of the most debated stories from last week was about the launch of a stablecoin by JP Morgan Chase, the largest bank in the U.S.  However, Forbes is calling attention to the fact that meanwhile the JPM coin is still in testing phase, the NY-headquartered Signature Bank has been running their own dollar-pegged ERC-20 token for facilitating transactions between institutional clients since the 1st of January of 2019.

On an article published back on late December of 2018, the cofounder and CEO of Signature Bank Joe DePaolo anticipated the move in the following way:

“We have to do this, otherwise we’re not going to exist […] if you’re not involved in blockchain, in five years, you won’t be around as a bank.”

The conversion of U.S. dollars into tokens compliant with Ethereum’s ERC-20 standard enables since January institutional clients of the bank to move their funds 24/7, 365 days a year, in 30 seconds, as opposed to previous settling times as long as three days by means of the Swift interbank platform, which was also generally unavailable during weekends.

In the article published today by Forbes, DePaolo took a swing at JP Morgan, referencing their stablecoin launch :"I don't think its bad for a bank to be number two". The CEO of Signature Bank expressed his satsifactions with the approval process from the Department of Financial Services:

"It wasn't lengthy, but it was incredibly thorough. They had an expertise, so it wasn't as if a regulator was asking questions that they didn't understand, so I would say they were well prepared. They had the knowledge. They asked the right questions. They were encouraging, and they were very supportive."

Even though the JPM coin has been dubbbed by media such as CNBC as "the first bank crypto", the article by Forbes proves them wrong. Although, in all fairness, the crypto space has already questioned severely the dubbing of the JPM coin as a cryptocurrency.

Read more: JPM Coin is a "big scam", according to the YouTuber Boxmining; Max Keiser on JP Morgan coin: "Epic failure according to the market"

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