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

Odaily Planet Daily News According to the latest report from JPMorgan, although tokenized money market funds have yield-generating capabilities, they still only account for about 5% of the broader "stablecoin ecosystem," and the core status of stablecoins within the crypto ecosystem is difficult to replace 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 are subject to securities attributes, including registration, disclosure, and transfer restrictions, creating a structural regulatory disadvantage.

JPMorgan analysts, led by Nikolaos Panigirtzoglou, predict that without significant changes to the regulatory environment, it will be difficult for the market size of tokenized money market funds to exceed 10%–15% of the overall stablecoin market. Current demand is primarily concentrated among crypto-native investors seeking yield, as well as institutional funds looking to balance on-chain settlement with traditional asset protection.

The report also points out that despite the advantages of tokenized funds, 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, it will be challenging for such products to challenge the infrastructure-level status of stablecoins in the crypto market. (CoinDesk)