JPMorgan Reiterates: Stablecoin Market Unlikely to Hit $1 Trillion by 2028 According to The Block, JPMorgan analysts have reiterated that the stablecoin market is unlikely to reach the $1 trillion mark in the coming years. Its growth is expected to align with the broader cryptocurrency market rather than significantly outpace it. The report highlights that the stablecoin market has grown by approximately $100 billion this year, surpassing the $300 billion milestone, with growth primarily concentrated in two major stablecoins. This supports their long-standing view that stablecoin growth is still largely driven by activities within the crypto ecosystem. Just this year alone, driven by the surge in perpetual futures trading, stablecoin holdings on derivatives exchanges have increased by about $20 billion, making this activity a key driver of stablecoin supply growth. As a result, over the next few years, the stablecoin market is likely to continue growing in sync with the overall cryptocurrency market cap, potentially reaching $500 billion to $600 billion by 2028—far below the most optimistic projections of $2 trillion to $4 trillion. Although payment-related use cases are expanding, this doesn’t necessarily mean the stablecoin market cap will see significant growth. As stablecoins become more integrated into payment systems, their velocity of circulation will become more important than their absolute supply. With the growing adoption of stablecoins, banks are increasingly exploring tokenized deposits, which aim to mitigate risks associated with stablecoins. Additionally, regional CBDC projects, as another competing force, may reduce reliance on privately issued stablecoins, particularly in institutional and cross-border use cases.