While cryptocurrency and digital asset ecosystem is filled with speculations about JPMorgan’s plan to release its own JPM coin, a comparatively smaller New York-based bank has already been doing this for around 2 months.
It is to be noted that Signature Bank’s blockchain-based Signet system has on-boarded more than a hundred clients, since its launch at the beginning of the year. Bank executives said that these clients are purportedly using the Signet system to send each other millions of dollars a day.
Signature Bank Private Cryptocurrency
Furthermore, Signature is one of the U.S. banks that will provide deposit accounts to a digital asset and crypto-based startups. The bank group also includes Silvergate Bank in San Diego and fellow New Yorkers at Metropolitan Bank.
Although these clients were the primary group to adopt Signet, the bank says non-cryptocurrency businesses are signing up as well.
Besides the formerly announced American PowerNet, DePaolo mentioned that Signature is bringing on 2 other ecosystems where quick movement of property and money is significant. It is to be noted that American PowerNet is an independent electrical power trading firm that made Signet the payments platform for its renewable energy clients.
JPMorgan Cryptocurrency Versus Signature Bank Blockchain
Notably, Signature Bank is less than 2 percent the size of JPMorgan, with around $45 billion in assets. JP Morgan is allegedly the largest bank in the U.S. So it’s perhaps understandable that Signature chairman Scott Shay and DePaolo obviously had some sense of achievement to show when pointing out that JPM Coin, announced Thursday, is outstandingly analogous to what they already have.
One of the most noteworthy similarities between JPM Coin and Signature’s blockchain system is that both work on private alterations of ethereum technology.
The Signet platform is built in combination with trueDigital. TrueDigital is a proprietary blockchain that also applies ethereum as its base. On the other hand, JPM is made in conjunction with Quorum. Interestingly, Quorum is a data privacy-oriented fork of the code used in ethereum public blockchain.
One more similarity between the two is that both involve stablecoins. Both of them have real-world dollars deposited at the bank in exchange for tokens that clients can send each other by means of a distributed ledger. They can then redeem again one-to-one with the institution.