A report released by JPMorgan predicts the stablecoin market will reach $500 billion by 2028, though this figure falls short of more optimistic forecasts.
JPMorgan's Predictions on Stablecoins
In the report led by JPMorgan strategist Nikolaos Panigirtzoglou, a more cautious growth scenario for the sector is presented. According to the report, the main driver of stablecoin adoption still hinges on crypto-native activities, while large-scale payment integration remains limited.
Key Factors Driving Demand for Stablecoins
JPMorgan states that about 88% of stablecoin demand comes from intra-crypto transactions such as spot and futures trading, DeFi collateral, and crypto companies’ reserve assets. In comparison, payments account for only 6% of overall demand. The bank argues that even in the most optimistic scenario, the market size of stablecoins for payment purposes will show limited growth.
Comparison with Predictions of Other Institutions
Some institutions are far more optimistic than JPMorgan. For instance, Standard Chartered predicts that the supply of stablecoins could increase tenfold by 2028, reaching $2 trillion, if the GENIUS (Guiding and Establishing National Innovation for US Stablecoins) Act, expected to be passed in the US, is enacted. By pointing out that this law would bring legitimacy to the sector, Standard Chartered states that it could lead to a significant increase in US-based stablecoins.
Thus, JPMorgan's projections for stablecoins reflect a more cautious stance compared to the more optimistic expectations of other financial institutions.
