StableCOin market is ready to grow to $ 500 billion in 2028, according to JPMorgan (JPM) Strategists, a projection that falls well under some of the more exuberant forecasts that require a trillion of $ 1 to $ 2 trillion market capital within the same timeframe, Wall Street Bank said in a research report on Thursday.
In the note led by the strategist Nikolao’s Panigirtzoglou, the bank outlined a more temperate overview of the sector’s orbit and argued that crypto-native demand, not wider payment uptake remains the primary driver of stableecoin use.
“We find forecasts for an exponential expansion of StableCecoin Universe Rome $ 250 billion currently to $ 1 trillion- $ 2 trillion in the coming years as Olektist,” the team wrote.
Stableecoins are cryptocurrencies whose value is bound to another asset, such as the US dollar or gold. They play an important role in cryptocurrency markets that provide a payment infrastructure and are also used to transfer money internationally.
According to the bank’s analysts, approx. 88% of stableCOin demand today from crypto-native activity including trade, decentralized funding (Defi) Security and unemployed funds owned by cryptic companies with payments that account for only 6%.
Even during generous assumptions, the growth of stablecoin use in payments would only marginally increase the total market size, the report said.
JPMorgan also rejected the likelihood of a large -scale shift from traditional bank deposits or money market funds to stableecoins with reference to the lack of yield and added friction by moving between Fiat and Crypto.
The company’s analysts pushed back on comparisons with China’s E-CNY or the increase in Alipay and WeChat Pay, noting that these systems are centralized and not representative of how stablecoins work.
In the end, the bank looks moderately, crypto -driven growth As the most realistic path for stableecoins, not a mass recording.
Some banks are more bullish than JPMorgan about the prospects of stableecoins.
Guidance and Establishing National Innovation for us StableCeChin (Genius) ACT is expected to be adopted in the United States in the coming months, and it can trigger an almost 10 times jump in the stablecoin supply, says Investment Bank Standard Chartered in a research report in April.
US law “would further legitimize the stablecoin industry,” the bank’s analysts wrote at the time, adding that “We estimate that this would cause the total stablecoin supply to rise from $ 230 billion today to $ 2 trillion at the end of 2028.”
Read more: StableCOin market could grow to $ 2T at Slut-20128: Standard Charter
