JPMorgan Sees Stablecoin Outlook as Less Rosy Than Bulls Think
2025-07-04 02:01:32
Main Idea
JPMorgan cautions that the stablecoin market's growth and utility are overestimated, predicting slower expansion and limited real-world adoption compared to bullish forecasts.
Key Points
1. JPMorgan estimates only 6% of stablecoin demand ($15b) is tied to real-world use, predicting the market will grow to $500b by 2028, far below trillion-dollar forecasts.
2. The stablecoin market has grown 23% in 2024 to $254b, but JPMorgan argues this does not indicate mass-market utility.
3. Despite optimism from the GENIUS Act passage, JPMorgan notes stablecoin adoption outside crypto trading remains minimal and fragmented.
4. Private stablecoins face challenges, with PayPal's CEO stating they lack strong consumer incentives for mass adoption in the U.S.
5. JPMorgan dismisses comparisons to China's digital yuan or platforms like Alipay/WeChat Pay, as they don't provide a roadmap for U.S. stablecoin adoption.
Description
JPMorgan has cast doubt on the bullish projections surrounding stablecoins, predicting the market will only grow to $500b by 2028 and cautioning that trillion-dollar forecasts are “far too optimistic.” The bank pointed to weak mainstream adoption and limited use beyond crypto trading as key hurdles to growth. Reuters reported Friday that the brokerage said stablecoins remain largely confined to their original role as tools for trading and collateral within crypto markets. Despite increased atten...
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