JPMorgan: $2 trillion stablecoin market forecast is "optimistic"
Kyiv • UNN
JPMorgan Chase & Co. considers the forecast of the stablecoin market growing to $2 trillion "somewhat optimistic" because the infrastructure is not yet developed. The bank predicts a doubling or tripling of the market, which is significantly lower than other estimates.
The impressive forecast of a potential $2 trillion stablecoin market growth, often mentioned during recent attempts to approve crypto market regulation in the US, is for the first time "a bit optimistic," according to JPMorgan Chase & Co., writes UNN with reference to Bloomberg.
Details
Last month, Treasury Secretary Scott Bessent stated during a Senate hearing that the sector could even exceed this estimate by 2028 with legislative support. This would be almost eight times the current market value of all stablecoins at $260 billion.
"We find it hard to believe that the market can grow significantly over the next few years, as the infrastructure/ecosystem that supports stablecoins is still far from developed and will take time to form," JPMorgan strategists wrote, indicating that growth "may occur at a slower pace than some might expect."
Stablecoins are touted as disruptive to traditional financial systems due to their potential use for virtually instant cross-border payments and remittances. Unlike more volatile cryptocurrencies, stablecoins are typically pegged to fiat currencies, potentially simplifying instant and 24/7 payment settlements. But despite the recent surge in interest in these assets, they still account for less than 1% of global money flows, suggesting that the digital asset's role in changing financial rails still requires significant advancement, strategists write.
JPMorgan noted that given the current growth trajectory, it is more likely that the market will double or triple, which is much lower compared to other estimates. The stablecoin market has grown significantly in recent years, with USDT Tether Holdings SA and USDC Circle Internet Group Inc. accounting for over 60% of the market.
"We suspect that liquidity investors, both retail and institutional, are not going to immediately switch to payment stablecoins as a cash alternative," the bank said.
USA solidifies dominance in crypto technologies: Trump signs GENIUS Act18.07.25, 22:45 • 5914 views