TechFlow News, May 22: According to The Block, JPMorgan analysts noted in their latest report that tokenized money market funds currently account for only about 5% of the stablecoin market size and are expected to continue growing. However, unless there is a significant shift in the regulatory environment, they are unlikely to exceed a market share ceiling of 10–15%. The analysts believe stablecoins remain the preferred cash instrument within the crypto ecosystem due to their widespread use in trading, settlement, cross-border payments, and liquidity management.
In contrast, tokenized money market funds—classified as securities—are subject to structural regulatory disadvantages, including requirements for registration, disclosure, and transfer restrictions, hindering their free circulation within on-chain ecosystems. Although the U.S. Securities and Exchange Commission (SEC) has introduced streamlined processes for issuing on-chain money market funds, JPMorgan analysts view this as merely a “marginal improvement” insufficient to fundamentally alter the market dynamics between these two asset classes.
