JPMorgan Projects Stablecoin Market to Reach $500 Billion by 2028
JPMorgan projects the stablecoin market will reach $500 billion by 2028, a conservative estimate compared to forecasts of up to $2 trillion. Key points from the report include:
- Stablecoin usage is primarily driven by crypto-native demand rather than broader payment adoption.
- Currently, 88% of stablecoin demand arises from trading and decentralized finance (DeFi), with only 6% attributed to payments.
- Growth in payment usage will have a minimal effect on overall market size.
- A shift from traditional bank deposits to stablecoins is unlikely due to lack of yield and movement friction.
- Comparisons with centralized systems like China's e-CNY are deemed inappropriate for stablecoins.
In contrast, Standard Chartered anticipates U.S. legislation could boost stablecoin supply from $230 billion to $2 trillion by the end of 2028, emphasizing the potential for significant industry legitimization.