JPMorgan Strategists Expect Stablecoins to Grow Slower Than Commonly Anticipated

JPMorgan Chase is skeptical of claims that the stablecoin market will grow eightfold to reach $2 trillion.

That figure was often cited by proponents of crypto-related bills in Congress, and Treasury Secretary Scott Bessent told a Senate hearing that the stablecoin sector could grow even faster, Bloomberg reported Wednesday (July 23).

JPMorgan strategists wrote in a Wednesday note to clients, per the report: “We find it hard to believe that the market could grow substantially larger over the next few years as the infrastructure/ecosystem that supports stablecoins is far from developed and will take time to build out. While adoption is poised to grow further, it might be at a slower pace than what some might anticipate.”

The strategists also wrote in the note that the market is likely to double or triple rather than growing eightfold, stablecoins account for less than 1% of global money flows, and liquidity investors are unlikely to immediately adopt stablecoins as a cash alternative because they manage their cash conservatively, according to the report.

The United States’ first piece of crypto legislation, the GENIUS Act, was written to regulate stablecoins and was signed into law by President Donald Trump on Friday (July 18).

PYMNTS reported at the time that while the passage of the GENIUS Act can be seen as the potential beginning of new operating model for banks, the transformation may not be easy, and many U.S. banks are still in the early stages of stablecoin exploration.

During recent quarterly earnings reports, top executives from Citi and JPMorgan placed stablecoin infrastructure at the center of their long-term strategy for cross-border payments, corporate treasury modernization and competitive differentiation.

JPMorgan’s Jamie Dimon said during an earnings call that the bank is “going to be involved in both JPMorgan deposit coin and stablecoins” and that it would have to get involved more fully in the stablecoin industry as FinTechs make headwind in the space.

PYMNTS reported at the time that Dimon’s comments during the call indicated that while stablecoins are a work in progress, they will be a fixture on the world stage.

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