Regulators are boring.
I don’t know about you, but whenever a new regulatory comment surfaces in crypto I’m not chopping at the bit to read it.
Well, yesterday I got around to eating my vegetables by reading the January 4th statement from the U.S. Office of the Comptroller of the Currency (OCC). It’s a group that tells U.S. federally regulated banks what they can and can’t do regarding currencies. They are one of several rule-makers.
Their letter just gave the node for banks to run nodes and light nodes on independent node verification networks (INVNs).
IN.. V.. huh?
These conceited ivory tower fools are trying to say Blockchain networks. Not sure why they need to sound stuffy, but maybe that’s a requirement for a government job now… Anyways…
U.S. federally regulated banks can run nodes on blockchains. It also means they can issue stable coins.
On its own, this is great. Banks can now begin transacting stablecoins and create their own nodes.
So what’s the real story here? Why should you care?
About a month ago Compound Labs made an announcement about Compound Chain. It’ll allow more assets to enter the protocol from a variety of ledger. One of which was Quorum.
Quorum is an offshoot of JP Morgan and is known to work with JPM Coin, the bank’s personal stablecoin. The same coin that’s mentioned in the World Economic Forum 2020 toolkit.
The short version of the story is this recent green light from the OCC is paving the way for JPM Coin to enter Ethereum and more importantly DeFi via Compound.
Yup, you heard me. One of the largest banks in the world is moving closer to DeFi on Ethereum.
It’s most likely why JP Morgan, Quorum, and ConsenSys — the largest consultancy for Ethereum — have been in collaboration. The progress is being made behind closed doors.
JP Morgan is already said to have a 100+ blockchain team not a part of quorum.. So while their movement might feel glacial in speed, their impact in the market won’t be stopped once they arrive. It’ll push the price above $10k.
For now this OCC/JPM Coin/Ethereum is another story to follow and track.
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