Ripple is under serious threat as IBM joins forces with major banks to issue cryptocurrencies. In a Bloomberg report, IBM revealed it was in talks with two “major US banks” to issue a cryptocurrency for internal and remittance payments.

The IBM initiative, which is powered by Stellar’s blockchain, is a huge threat to Ripple. Ripple has always positioned itself and its associated cryptocurrency XRP as the future standard for banking remittance payments.

If banks create their own blockchain solutions for instant payments, is Ripple obsolete?

IBM’s head of blockchain Jesse Lund said the interest was sparked by JP Morgan’s controversial stable coin, JPM Coin. The two “major banks” in question have not been revealed.

“Major US Banks” Follow JP Morgan’s Cryptocurrency Lead

JP Morgan sent shockwaves through the crypto community when it launched its own cryptocurrency, JPM Coin in February. JPM Coin is a stablecoin, pegged to the value of a dollar. It will be used to instantly settle transactions in the bank’s payment network, reduce transfer times, and ultimately reduce friction in international transfers.

Read the full story on CCN.com.