JPMorgan: Stablecoins Are the Crypto "Cash Infrastructure," Tokenized Money Market Funds Unlikely to Exceed 10%–15% Market Share

According to the latest report from JPMorgan, although tokenized money market funds offer yield-bearing capabilities, they still hold only about a 5% market share within the broader "stablecoin ecosystem," and the core position of stablecoins in the crypto landscape is unlikely to be replaced in the short term.

The report states that stablecoins have become the default "cash tool" for trading, collateral, settlement, cross-border payments, and liquidity management, widely used across centralized exchanges and DeFi protocols. In contrast, tokenized money market funds, constrained by their securities nature, are subject to registration, disclosure, and transfer restrictions, resulting in a structural regulatory disadvantage.

Analysts at JPMorgan, led by Nikolaos Panigirtzoglou, estimate that without significant changes in the regulatory environment, the market size of tokenized money market funds is unlikely to break through 10%–15% of the overall stablecoin market. Current demand is primarily concentrated among crypto-native investors seeking yields, as well as institutional funds looking to combine on-chain settlement with traditional asset protection.

The report also notes that while tokenized funds offer advantages such as near-real-time settlement, 24/7 transfers, and automated clearing, their growth remains constrained by liquidity, counterparty risk, and regulatory uncertainty. JPMorgan believes that without regulatory easing, such products will find it difficult to challenge the infrastructure-level status of stablecoins in the crypto market. (CoinDesk)