A recent report by JPMorgan offers a cautious outlook for the stablecoin market, proposing a growth to $500 billion by 2028, falling short of the $1-2 trillion expectations some analysts predict.
Main Demand for Stablecoins
According to JPMorgan's research, 88% of stablecoin demand comes from within the crypto ecosystem, including trading, DeFi activities, and funds held by crypto firms. Only 6% of stablecoin usage is related to payments. This is a key reason why the bank does not support trillion-dollar forecasts.
Comparison with Traditional Systems
Some analysts believe stablecoins may draw funds away from bank deposits. However, JPMorgan argues that insufficient yields and high friction in moving money between crypto and fiat prevent this from happening. The bank also dismissed comparisons to centralized systems like China's e-CNY, Alipay, and WeChat Pay.
Future of Stablecoins and Legislative Impact
Not everyone agrees with JPMorgan's cautious take. Standard Chartered predicts that new legislation, particularly the GENIUS Act, could be a game-changer, potentially increasing stablecoin supply tenfold, pushing the market to $2 trillion. Analysts believe that legal clarity could drive rapid growth.
In summary, while the stablecoin market shows growth, it is not as rapid or broad as some might expect. The ability of stablecoins to move beyond crypto circles will depend on upcoming laws that could reshape the current landscape.
