JPMorgan Predicts Slower Stablecoin Growth Versus $2T Outlook
JPMorgan strategists have challenged forecasts projecting the stablecoin market to reach $2 trillion by 2028. They point out that the sector is currently valued at around $270 billion, with USDT and USDC commanding over 60% of market share. Analysts argue that payment infrastructure remains immature and that conservative cash management among both retail and institutional investors will likely limit demand, suggesting that the market may only double or triple over the next three years. This view contrasts with bullish projections from Standard Chartered and the US Treasury, which cite supportive measures such as the GENIUS Act. Despite CEO Jamie Dimon’s caution, JPMorgan is exploring stablecoin technology through a consortium with Bank of America, Citigroup and Wells Fargo, and has launched a pilot deposit token, JPMD, for institutional clients. Traders should monitor regulatory developments, infrastructure upgrades and adoption trends as key factors shaping stablecoin market growth and trading volume.
Bearish
JPMorgan’s cautious revision of the stablecoin market outlook highlights potential headwinds in adoption and infrastructure development. In the short term, reduced growth expectations may dampen trading volume and investor enthusiasm. Over the long term, slower issuance and conservative cash management could limit stablecoin circulation despite regulatory support, sustaining a muted market environment.