JPMorgan Chase: Tokenized Treasury Bonds Will Challenge Stablecoins, But Will Not Completely Replace Them

Odaily News Analysts at JPMorgan Chase said the tokenized Treasury market is growing, and tokenized U.S. Treasury bonds are gaining favor as a yield alternative to stablecoins and may challenge the dominance of stablecoins. However, analysts pointed out that regulatory restrictions and liquidity issues indicate that tokenized Treasury bonds may only partially replace stablecoins. Analysts said that major stablecoin issuers such as Tether (USDT) and Circle (USDC) do not share reserve revenue with users, a practice that will not only reduce their revenue but also classify stablecoins as securities. Analysts pointed out that this classification will subject them to strict regulatory supervision, which may limit their use as collateral in the cryptocurrency market.