On-Chain Finance Competition: Traditional Finance vs Crypto Intensifies

Tiger Research highlights the growing competition between traditional finance and crypto in the on-chain finance landscape. Their report, "Competition Over On-Chain Finance: Who Will Design the New Order?", emphasizes the blurring lines and the importance of harmonizing technology and institutions. JP Morgan's introduction of JPMD, a deposit token on the Base chain, marks a significant move into open blockchain finance. This allows users to deposit dollars and receive corresponding JPMD tokens, offering instant cash-out options, depositor protection, and interest income. Circle, the issuer of USDC, is also striving to establish a trust bank, seeking independent authority over reserve storage and management. This move aims to expand their financial infrastructure business, previously reliant on partnerships with Bank of New York Mellon and BlackRock. The ability to directly manage reserves is a crucial step for Circle in solidifying its position in the evolving on-chain finance ecosystem. This intensifying competition promises further innovation and development in the space. ```