JPMorgan Halves Stablecoin Growth Forecast to $500 Billion

JPMorgan reduced its stablecoin market growth predictions to $500 billion for 2028 which represents half of their initial optimistic forecast. The bank explained that stablecoins have not gained sufficient acceptance for everyday payments and their applications extend mainly to cryptocurrency trading activities.

The dollar-pegged tokens show minimal expansion beyond cryptocurrency exchanges and DeFi platforms despite increasing interest from fintechs and banks. The payments sector represents only 6% of stablecoin demand according to JPMorgan which translates to $15 billion.

The firm stated in its Thursday note that stablecoins will not replace traditional money in the foreseeable future. The stablecoin market value stands at $250 billion according to JPMorgan which reflects their concerns about fragmented regulations and slow adoption in the real economy.

The revised projection from JPMorgan stands in direct opposition to Standard Chartered and Bernstein’s previous predictions which forecast stablecoin supply to reach $2 trillion and $4 trillion respectively during the next decade.

The international adoption of stablecoins remains restricted because China along with other nations support their own digital currency initiatives. The Hong Kong-based unit of Ant Group announced its plans to obtain a license for stablecoin issuance.

The GENIUS Act provides regulatory clarity in the United States yet JPMorgan predicts substantial obstacles must be overcome before stablecoins can lead global financial systems.