JPMorgan Cools Stablecoin Enthusiasm, Predicts $500B Market by 2028

JPMorgan analysts have poured cold water on exuberant stablecoin projections, forecasting the market will cap at $500 billion by 2028—a far cry from trillion-dollar predictions circulating among crypto bulls. The bank attributes this tempered outlook to stagnant mainstream adoption and the assets' continued confinement to crypto trading ecosystems.

Despite 23% growth this year pushing total stablecoin value to $254 billion, JPMorgan notes only 6% of demand ($15 billion) stems from actual payments activity. "The fantasy of stablecoins replacing fiat for daily transactions remains just that—a fantasy," the report concludes, highlighting persistent utility gaps beyond speculative trading.

Regulatory progress like the US Senate's GENIUS Act has fueled optimism, with Standard Chartered previously forecasting explosive growth. Yet JPMorgan maintains that without demonstrable real-world adoption, stablecoins will remain niche instruments rather than revolutionary payment solutions.