JPMorgan: Stablecoins Will Keep Dominating Crypto — Tokenized Money Funds Capped at 10-15%!

Tokenized money market funds account for just 5% of the broader stablecoin universe despite offering yield, JPMorgan said in a Wednesday research note — and the bank's analysts don't see that changing dramatically without a regulatory overhaul.

The core problem, according to analysts led by Nikolaos Panigirtzoglou, is structural: tokenized money market funds are classified as securities, saddling them with registration, disclosure, and transfer restrictions that prevent them from circulating freely across exchanges and DeFi protocols. Stablecoins, by contrast, have become the crypto ecosystem's default cash instrument for trading, collateral management, settlement, and cross-border payments.

JPMorgan expects tokenized money market fund growth to outpace stablecoins in percentage terms — their yield is a genuine draw — but the bank doubts they will breach 10-15% of the stablecoin…