Everyone is aware that JPMorgan Chase released JPM Coin, pegged to the U.S. dollar, set for testing later in 2019. Although, it was said that JPM was one of its kind, Signature bank came up in competition with JPM coin. During December 2018, the bank created a Signet which is a blockchain based payment ecosystem using “Signets” as digital dollars.
Basically, the Signet platform utilized a private, permission form of ethereum’s blockchain for developing the platform. In an interview with Forbes, the Signature Bank Co Founder and Chairman Scott Shay detailed about the platform saying,
We’re using an ethereum blockchain within essentially our own walled garden, in that we will be maintaining the blockchain.
Explaining further about the platform’s private, permissioned ethereum blockchain usage, Shay said,
We can maintain the private keys. We are refreshing the blockchain ourselves and powering the blockchain ourselves, so there’s no need for any independent miners. There certainly aren’t any, and the blockchain refreshes every 5 to 25 seconds.
Signature bank being the 40th largest bank in the U.S. was the first FDIC-insured bank to launch such a product. Also, as per the bank statement, they have a full regulatory approval from New York State Department of Financial Services. On January 1, 2019 the Signature bank launched its blockchain-based digital payments platform.
Whereas the launch of JPM coin is yet in a trial phase as CNBC reported on February 14 saying “trials set to start in a few months”. Although Signature Bank launched its product prior to JPMorgan Chase, people are much aware about JPM coin launch. As it was presented as first of its kind. But, the privilege goes to Signature bank.
Pointing towards this fact, the Signature Bank co-founder, CEO and president Joe DePaolo thinks there is nothing bad for a bank to be on second position. In the news release on Feb 14, the bank hints on that the JPM Coin still needs to sort out its regulatory parameters and approvals.
As it stated,
JPM Coin is currently a prototype. As we move towards production we will actively engage our regulators to explain its design and solicit their feedback and any necessary approvals.
Shay explained that using a Blockchain Ethereum for Signet Platform will not follow any bank secrecy, anti-money laundering and Know-your-customer policies. DePaolo said the things are moving quite smoothly without any glitches. DePaolo also hints on the continued improvement of its products with new versions and improvements coming ahead.