JPMorgan Projects Stablecoin Market to Hit $500B by 2028 Amid Regulatory Shifts

JPMorgan's latest analysis paints a measured picture of the stablecoin market, forecasting growth to $500 billion by 2028—a figure notably more conservative than industry optimists suggest. The bank attributes this tempered outlook to current usage data: 88% of stablecoin activity revolves around crypto trading and DeFi operations, with just 6% tied to real-world payments.

Regulatory winds may shift this trajectory. The US Senate's 68-30 passage of the GENIUS Act introduces long-awaited legislative clarity, potentially attracting institutional capital. Yet JPMorgan remains skeptical about stablecoins displacing traditional banking, citing low yields and cumbersome fiat conversion costs as persistent barriers.

Market valuation currently stands at $250 billion, half the projected 2028 figure. The disconnect between trading utility and payment adoption suggests stablecoins remain primarily a crypto-native tool rather than a mainstream financial instrument.