Wall Street Is Coming for Crypto

28 June 2023

Welcome, and thank you for being part of the MyZucoins community! Dive into our daily crypto, finance and tech news summary to stay in the know.

Cryptocurrency is undergoing a seismic shift as traditional financial institutions enter the market. Experts anticipate a "huge, huge market" for big banks in the crypto industry, with stablecoins and central bank digital currencies driving the trend. However, regulatory uncertainty remains a challenge. While crypto's anti-establishment actors may resist, the landscape is poised to evolve as robust regulations emerge.

Institutional involvement is gaining traction. BlackRock's bid for a spot-based Bitcoin ETF and Wall Street giants like Fidelity and Charles Schwab launching their crypto exchange signal a changing tide. The approval of BlackRock's Bitcoin ETF would be a game-changer, and traditional firms are closely monitoring its progress. The SEC's lawsuit against Coinbase and BlackRock's continued partnership are generating confidence and sympathy in the traditional finance sector.

While some crypto enthusiasts fear a takeover by traditional finance, others see it as a necessary step for mainstream adoption. Wall Street's entry into the crypto market will help legitimize it as an investable asset class. Despite the ongoing battle between traditional and decentralized finance, crypto's evolution is inevitable and crucial for its long-term success. Read more here.

Zucoins on SplitChain: Simplifying Wall Street's Crypto Ambitions

As more and more of Wall Street enters the world of crypto, Zucoins has the potential to emerge as a valuable tool in this fast-paced world of settlements. The underlying SplitChain network is a solid fit for this space, with its easy integration into other systems, at a much lower cost compared to traditional blockchain systems. One way Splitchain achieves this is by having very short transaction histories. This leads to much, much less data stored across the network, which reduces costs and encourages fairer participation across the decentralized system. It's just another way Zucoins is making it easier for businesses to join in the next evolution of the internet, Web3.

JP Morgan's JPM Coin Does Euro Payment Settlement on its Own Private Blockchain

JP Morgan, a leading financial institution, has made a significant breakthrough in the world of digital payments. With its own JPM Coin, the bank successfully executed the first Euro-denominated transaction on its private blockchain, marking a major step forward in streamlining payment settlements for corporate clients in Europe. JPM Coin, exclusively available to institutional clients, is a digital token designed to facilitate secure and efficient payment settlements. Built on blockchain technology, JP Morgan aims to expedite transactions while maintaining high security.

Since its introduction four years ago, JPM Coin has played a vital role in settling over $300 billion in payments within JP Morgan's internal ecosystem. With daily payment processing reaching an impressive $9.8 trillion, the impact and scale of this innovative digital asset are significant. The adoption of cryptocurrency technology in the financial sector is gaining momentum. German software giant SAP, for example, is now utilizing Circle's US Dollar Coin (USDC) for cross-border payment tests, with a focus on enhancing speed and efficiency for small and medium-sized enterprises.

Although JPM coin is centralized and not open to the public (i.e. not permissionless), it goes a long to show how efficient these new kinds of financial systems can be, when applied effectively. As banks and businesses increasingly recognize the benefits of blockchain-based solutions, such as faster settlement times and improved security, a digital revolution in finance is underway. The successful integration of JPM Coin and the growing interest from industry players highlight the transformative potential of cryptocurrency technology in shaping the future of payments and financial transactions. Read more here.

Splitchain: More Participation with Open-Source and Zucoin Tokens

Zucoin's decision to make Splitchain open source will enable a huge number of third-party web and IT software developers to leverage the capabilities of the Splitchain network and create innovative solutions tailored to their specific industry needs.

As developers seek to utilize the Splitchain network for their applications, they will be required to hold Zucoin tokens. This requirement creates a direct correlation between the demand for Zucoins and the usage of the Splitchain network's resources. Hence, the mechanism is called "Direct Correlation Proof of Work" (DC-PoW).

The goal of this system architecture is to encourage a thriving long-term ecosystem, creating opportunities for individuals and businesses in the digital asset landscape and the next generation of the web.

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All the best,
Peter
MyZucoins

Disclaimer: Of course, this is not advice, financial or otherwise. It’s also important to consider the risks and challenges associated with any potential benefits.