JPMorgan: Stablecoin supply may reach $500 billion to $600 billion by 2028, well below optimistic expectations

Mars Finance reports that according to Coindesk, JPMorgan Chase stated that by 2028, the supply of stablecoins could reach between 500 billion and 600 billion USD, well below the most optimistic expectations of 2 trillion to 4 trillion USD. It indicated that the demand for stablecoins is mainly a matter of the crypto market rather than payment issues. JPMorgan Chase pointed out that since the beginning of this year, the stablecoin market size has grown by approximately 100 billion USD, reaching about 308 billion USD, with Tether’s USDT and Circle’s USDC leading this growth. Demand is still primarily driven by cryptocurrency trading, derivatives, and DeFi collateral requirements, with derivatives trading platforms adding about 20 billion USD in stablecoin holdings. Analysts said that the current driving force behind payments is relatively small, but as more service providers test stablecoin-based cross-border transfer channels, payment activity could increase. However, broader payment usage does not necessarily require larger stablecoin circulation, as the velocity of token circulation may increase with deeper integration. Additionally, banks and payment networks are also protecting their position in institutional fund flows through tokenized deposits and other blockchain initiatives, and CBDC initiatives may offer a regulated alternative to compete with private stablecoins.