“They don't say they want stablecoins.”
Hey, it's Marc.
Welcome to the Monday edition of the 51 Insights digital asset newsletter.
On Monday, JPMorgan put its deposit token on Ethereum, and MoneyGram put a dollar balance in its app. Different customers, same goal: keep the money in-house.
Here's what matters this week:
Let’s unpack. 👇
Source: Ethereum and Base contract data, Basescan; JPMorgan; 51 Insights analysis. Optional caption: JPMorgan's tokens outstanding on October 19, from contract data.
THE BIG STORY / DIGITAL CASH
Onchain, but in-house
What's going on here?
JPMorgan's blockchain unit, Kinexys, said on Monday that JPM Coin is now on Ethereum. JPM Coin is a token for a dollar deposit at JPMorgan. Institutional clients “can now move money” on Ethereum as well as on Base, Coinbase's network, where the token launched last November.
Why Ethereum? The bank pointed to its “depth of onchain liquidity and tokenized assets.” JPMorgan's asset management arm already runs two tokenized money market funds there.
The same morning, MoneyGram relaunched its app. US senders can now pay app users in Colombia and El Salvador, who can hold a dollar balance, pay bills and top up phones. Stablecoins run underneath. The release never names the coin or the chain.
What does this mean?
Both tokens are built to keep money inside. JPM Coin sits on a public chain, but “only vetted counterparties transact,” and JPMorgan says it is not a stablecoin. It's a JPMorgan deposit with a new address.
MoneyGram is playing the same game with families. Today, a transfer is collected in cash or at a bank, and the money leaves MoneyGram. Now it can stay in the app. A transfer is a one-off sale. A balance is a customer who stays. Inside its own network, Soohoo told Bloomberg, “you don't need to use a different stablecoin.”
Usage is still thin. On Base, the JPM Coin contract shows $1 million outstanding and two holders, almost a year after launch. MoneyGram is under pressure too: its monthly app users fell 9% in a year, Bloomberg reports, citing Sensor Tower.
Why should I care?
My read: the fight isn't banks versus stablecoins anymore. It's about who holds the balance. JPMorgan wants clients' cash to settle trades without leaving the bank. MoneyGram wants remittances to turn into balances in its app. If you run a bank in a remittance market, that's your deposit walking out.
What I'm watching: whether JPMorgan publishes JPM Coin's Ethereum supply, and whether its own funds start taking it as payment.
Related Pro story: A Wyoming Bank Beat JPMorgan Out the Door
Since Friday
Friday · DTCC skips public Ethereum. The US securities depository set out its tokenization service: 25 securities at launch, about $30 trillion of assets eligible, launching on Canton and DTCC's own private network. “Digital cash” is still only on the roadmap.
Friday · Banks ask for more time. Four bank groups, including the ABA and BPI, asked the Fed to push its GENIUS Act comment deadlines to January 29, 2027. The law takes effect by January 18 at the latest. Treasury's own GENIUS comments close today.
The week ahead
Tuesday, October 20 · SEC comments close. Last day to comment on the SEC's Regulation Crypto Assets. Money20/20 USA runs in Las Vegas through Wednesday.
Wednesday, October 21 · Solana's Alpenglow upgrade. Set for about 11 a.m. ET, it aims to finalize transactions in about 150 milliseconds. Validator votes leave the blocks, so transaction counts may drop even if use doesn't.
👉Follow all the stories on 51insights.xyz
One useful read
Four-Minute Transfers Upend How Money Moves Around the World · Bloomberg. Katherine Schwartz and Maria Clara Cobo on why Western Union and MoneyGram now issue their own tokens. Paywalled; free on Yahoo Finance. For the other side, SaveOnSend argues on X that the change is mostly in settlement, not in what customers pay.
My question for the week: if JPM Coin can only move between JPMorgan's clients, is it on Ethereum, or just parked next to it?
That’s all for now, folks.
Take care
– Marc & Team
PS: Your next client could be reading this.
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