Pundit Envisions XRP to Capture a Slice of JPMorgan Coin’s $1B Intraday Repo Market

WrathofKahneman (WOK), an XRP community figure, has expressed his desire to see XRP capture a slice of the $1 billion-a-day repo market that JPM Coin claims to move.

He shared his vision on Twitter, citing an article from Ledger Insights, noting that intraday repos represent the bulk of JPM Coin’s movement. The report spotlighted comments from Takis Georgakopoulos, JPMorgan’s Global Head of Payments, in an interview with Bloomberg.

JPM Coin claims to move $1b/day. The potential is amazing, not the token. @LedgerInsights noting intraday repos seem the bulk of movement. Love to see #XRP take a big piece of this pie. https://t.co/HdCJn9zOrp

— WrathofKahneman ? (@WKahneman) October 27, 2023

The JPMorgan Coin

JPM Coin, initiated by JPMorgan in 2019, is emerging as a significant player in the blockchain-based payments scene, preferred by large corporations such as Siemens Treasury, which leverages it for tokenized deposits and global money transfers.

Moreover, the token features intraday repo and token-based collateral management networks. Its repo framework, which makes up a large bulk of transaction volume, handled a $300 billion trade volume by June, according to Georgakopoulos.

The bank has expanded JPM Coin to include euros and explored international payments via the ABC Bank. In his comments to Bloomberg, Georgakopoulos hinted at a retail version of digital deposit tokens for consumers. These enhancements could further increase daily volume.

Meanwhile, in a recent interview on the Empire podcast, Tyrone Lobban, Head of Blockchain and Onyx Digital Assets at JPMorgan’s Onyx project, claimed that the bank processes about $10 trillion every night.

Lobban compared this volume to the combined volume of the two largest stablecoins, USDT and USDC. In the interview, he stressed that these stablecoins collectively process about $25 billion, 400 times less than the volume JPMorgan captures.

JPMorgan is now actively exploring ways to leverage the nascent blockchain technology. The bank’s involvement in projects like Partior and trials for deposit tokens on public blockchains illustrates its active engagement in the blockchain space.

XRP Potential to Capture the $1B Intraday Market

WOK’s recent comments emphasize the potential for XRP to capture a similar volume. XRP can take a big piece of the daily repo market pie, offering several advantages over JPM Coin. 

For instance, XRP is more decentralized and interoperable than JPM Coin, controlled by JP Morgan, and runs on a permissioned ledger. XRP can also support multiple currencies and assets, not just dollars and euros. The asset also enables fast and low-cost cross-border payments.

Moreover, XRP has a larger and more diverse user base. If XRP can capture a slice of the $1 billion a day repo market that JPM Coin claims to move, it could boost its liquidity and demand, as well as its value and adoption.