JPMorgan Projects Stablecoin Market to Reach Just $500B by 2028

Highlights:

• JPMorgan predicts stablecoin growth will reach $500B, far below the $2T industry estimate.
• The bank says 88% of stablecoin use is in crypto, and only 6% in real payments.
• Analysts say low returns and high fees stop stablecoins from wider mainstream adoption.

JPMorgan predicts the stablecoin market will grow to just $500 billion by 2028, which is far below the $1 trillion to $2 trillion estimates shared by others in the crypto industry. The bank gave a cautious outlook, saying stablecoins are still mostly used within the crypto industry and have not yet seen strong adoption in the wider financial system. 

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JPMorgan Says Stablecoins Not Ready to Replace Traditional Banking

According to the bank’s research, 88% of stablecoin activity comes from trading, DeFi platforms, and crypto company treasuries. On the other hand, just 6% of stablecoin demand comes from real-world payments. This limited use for payments suggests that stablecoins still haven’t achieved significant adoption in the wider financial system.

JPMorgan analysts disagree with the idea that stablecoins can soon replace bank deposits or money market funds. They explained that stablecoins do not offer enough yield right now and come with expensive and inconvenient conversions to and from fiat currency. These factors make them less attractive for everyday users and traditional investors. The bank stated, “The idea that stablecoins will replace traditional money for everyday use is still far from reality.” The firm highlighted that stablecoins still offer lower returns and come with costly fiat conversions, which hold them back from becoming a widely used alternative to regular money. 

Last month, China’s central bank chief said they’ll push the digital yuan globally. Ant Group, linked to Alibaba, also plans to get a stablecoin license in Hong Kong through its global arm running Alipay. But JPMorgan says the success of e-CNY, Alipay, or WeChat Pay doesn’t mean stablecoins will grow the same way.

JPMorgan says stablecoins need real-world use, not just hype or rules. Growth needs everyday adoption and better infrastructure. Outside crypto, stablecoin adoption is slow as countries upgrade payment systems and develop digital currencies.

Others See Stablecoins Playing a Much Bigger Role in the Future

Despite this, the bank values the current stablecoin market at around $250 billion. While it takes a cautious stance, Standard Chartered sees the potential for the market to grow significantly, possibly exceeding $2 trillion by 2028. The bank said new regulatory steps, such as the passing of the GENIUS Act, could lead to a tenfold growth in stablecoin supply in the coming years.

Last month, Treasury Secretary Scott Bessent said dollar-backed stablecoins could reach $2 trillion in three years. Speaking at a Senate hearing, he said the U.S. wants to keep the dollar strong worldwide. To support this, the government plans to bring stablecoins into the financial system with clear laws. These stablecoins must be fully backed by U.S. Treasury bills and short-term government debt.

🇺🇸 US Treasury Secretary: "Stablecoins could reach $2 trillion by 2028"

During a hearing before the US Senate, Treasury Secretary Scott Bessent predicted that the market for dollar-backed stablecoins could surpass $2 trillion within three years.

The GENIUS Act, the stablecoin… pic.twitter.com/iLWYnYN3gU

— Atlas21 (@Atlas21_news) June 12, 2025

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