JPMorgan is throwing cold water on the idea of a trillion-dollar stablecoin market, forecasting a much more conservative $500 billion valuation by 2028.
According to the bank, stablecoins remain deeply rooted in crypto-specific uses like trading and DeFi, with only a sliver — roughly 6% — tied to real-world payments.
That disconnect, the bank argues, exposes the gap between hype and actual adoption. Lower yields, costly conversions to fiat, and minimal utility in day-to-day transactions have prevented stablecoins from becoming a viable alternative to traditional money.
Still, regulatory momentum is building. The recent passage of the GENIUS Act in the U.S. Senate has raised hopes for clearer rules, which some believe could attract institutional money and accelerate adoption. Standard Chartered, for example, projects stablecoins could exceed $2 trillion in value by the end of the decade if regulatory support strengthens.
But there’s another obstacle: central banks. While stablecoin growth stalls, countries around the world are fast-tracking their own digital currencies. From China’s digital yuan and Russia’s digital ruble to the ECB’s privacy-focused digital euro, CBDC development is expanding rapidly. Even Israel has launched a challenge to explore digital shekel prototypes, though it remains cautious on full deployment.
In this environment, JPMorgan doubts that stablecoins will replace traditional banking anytime soon — especially with governments racing to claim the digital payments space first.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is passionate about questions of meaning. He is a fluent German speaker as well as He has been in the crypto space for more than three years and has an eye for spotting emerging trends in the world of digital currencies. Whether providing in-depth analysis or reporting on all topics on a daily basis, his deep understanding and enthusiasm for what he does makes him a valuable addition to the team.
Source: https://coindoo.com/why-jpmorgan-thinks-stablecoins-wont-hit-1-trillion-anytime-soon/