TechFlow news, July 3 — According to CoinDesk, in its latest research report, JPMorgan predicts the stablecoin market will grow to $500 billion by 2028, significantly lower than other institutions' optimistic projections of $1 trillion to $2 trillion.
The report states that currently around 88% of stablecoin demand comes from crypto-native activities, including trading, DeFi collateral, and idle funds held by crypto firms, while payment use accounts for only 6%.
JPMorgan analysts believe that even under optimistic assumptions, growth in payments would only marginally increase the overall market size. The bank also rejects the possibility of stablecoins widely replacing traditional bank deposits or money market funds, citing stablecoins' lack of yield and friction in converting between fiat and cryptocurrencies.
