JPMorgan Team Is Positive About Ethereum2.0 and Staking

by in Cryptocurrency News

JPMorgan crypto staking

JPMorgan recently published a report, where the CEO Jamie Dimon and two senior analysts shared their views on blockchains, Ethereum upgrades, and staking. They mentioned the importance of running more energy-efficient networks and that the popularity of these types of networks will grow.

Related: JPMorgan Launches "Basket" Product for Cryptocurrencies

As published by Forbes, JPMorgan team says a new method of gaining income called staking will take off for both institutional investors and individuals. Presently, Bitcoin and Ethereum use the Proof-of-Work mining mechanism which is energy-consuming. Ethereum has been working to switch to Proof-of-Stake which requires less energy.

As stated in the report, there is generated around $9 B worth of revenue through crypto staking per year.

JP Morgan team believes after the launch of Ethereum 2.0 the staking adoption will become broader and could result in staking pay-outs to go up to $20 B in the quarters. By 2025 the amount could surge to $40 B.

It was mentioned in the report that staking may bring huge profits for crypto intermediaries like Coinbase especially after Eth 2.0 launch, planned for 2022.

In 2018 JPMorgan started to explore the DLT technology and use cases of blockchain technology across its business. In 2019, the bank giant issued JPMCoin, a stablecoin pegged to the USD. This March it started offering customers exposure to BTC.