The Stablescoin market is about to reach $ 500 billion by 2028, according to JPMorgan (JPM) The strategists, a projection which does not become again from some of the most exuberant forecasts, providing for a market capitalization of $ 1 billion to 2 dollars in the same period, Wall Street Bank said on Thursday in a research report.
In the note directed by the Stratege Nikolaos Panigirtzoglou, the bank described a more temperate vision of the trajectory of the sector, arguing that crypto-native demand, and no longer of payment adoption, remains the main engine of the use of the stable.
“We find forecasts for an exponential expansion of the universe of Stablecoin Rom 250 billion dollars currently at 1 billion of dollars – 2 billions of dollars in the coming years also too optimistic,” wrote the team.
Stablecoins are cryptocurrencies whose value is linked to another asset, such as US dollar or gold. They play a major role in the markets of cryptocurrencies, providing, among other things, payment infrastructure, and are also used to transfer money internationally.
According to the bank analysts, around 88% of the stablecoin demand today comes from a cryptocurrency activity, including trading, decentralized finance (Challenge) The collateral and inactive funds held by cryptographic companies, with payments giving only 6%.
Even in generous hypotheses, the growth in the use of stablescoin in payments would only marginally increase the overall size of the market, according to the report.
JPMorgan also rejected the probability of a large -scale passage of traditional banking deposits or funds from the monetary market in stablecoins, citing the lack of yield and additional friction of moving between the Fiat and the crypto.
The company’s analysts have rejected comparisons with the China E-CNY or the rise of Alipay and WeChat’s remuneration, noting that these systems are centralized and not representative of the functioning of the Stablecoins.
In the end, the bank sees moderate growth and focused on crypto As a most realistic path for stablecoins, not a mass adoption story.
Some banks are more optimistic than JPMorgan about the prospects of stablecoins.
The establishment and establishment of national innovation for American stablecoins (Genius) The law is expected to be adopted in the United States in the coming months, which could trigger a leap of almost 10 times in the Stablecoin offer, said the standard of the investment bank in a research report in April.
American legislation “would legitimize the stable industry more,” wrote the bank analysts at the time, adding that “we believe that this would lead to a total increase in the supply of stallions of $ 230 billion today to 2 dollars of dollars by the end of 2028”.
Find out more: The Stablescoin market could reach 2 t $ by the end of 2028: Standard Charterd
