JPMorgan Chase & Co. has projected that the stablecoin market will grow to $500 billion by 2028. This report illustrates current internal demand trends and limitations for broader financial integration.
Market Growth Forecast
JPMorgan expects the stablecoin market to reach $500 billion by 2028. The forecast is led by Nikolaos Panigirtzoglou and reflects a more conservative view compared to other financial institutions.
Internal Demand as Growth Driver
The report indicates that the primary source of growth is internal demand, including trading and DeFi activities. It shows that the circulating supply of stablecoins is expected to reach $254 billion by mid-2025.
Limited Opportunities Beyond Crypto Market
Despite the growing influence of stablecoins in crypto sectors, their adoption in traditional finance remains limited. Regulatory challenges and low public acceptance continue to be significant barriers. Nikolaos Panigirtzoglou stated, 'The idea that stablecoins will replace traditional money for everyday use is still far from reality.'
JPMorgan's forecast underscores the continued reliance of crypto markets on stablecoins, as well as the need for further regulatory changes for possible growth in their application beyond the crypto sphere.