- JPMorgan said that 4x stablecoin -growth -forecast up to $ 1T was ‘far too optimistic’.
- However, the bank was in early conversations with colleagues to spend its digital dollar.
JPMorgan Chase, in addition to other top American banks, is reportedly investigating whether they should jointly make a stablecoin for rival crypto-native, such as Tether’s USDT and Circle’s USDC.
According to a Wall Street Journal (WSJ) reportThe conversations were at an early stage and being able to change.
But the conversations were between JPMorgan Chase, Bank of America, Wells Fargo, Citi and other commercial banks.
Reacting to the update, Chris Burniske, a crypto VC partner at Placeholder, said”
“You can smell the Fomo.”
Surprisingly, JPMorgan Private Push contrasts his somewhat reserved growth benefits for the sector.
JPMorgan doubts the 4x growth costs
Most companies, including Standard Chartered, expect that Stablecoin’s market size will grow more than 4x from the current $ 240 billion to $ 1 trillion in the next two years.
In a “The Block” report, JPMorgan -analysts, led by Nikolaos Panigirtzoglou, triggered the growth projections as ‘too optimistic’.
“We think it is about two to talk about the three -stark or frills of the Stablecoin universe in the coming year to be far too optimistic.”
They quoted the restriction that is laid down in the US Senate Stablecoin Bill, Genius Act and the stable law of the house, which limits digital dollars to ‘payment’ and non-interest revenue instruments.
The crypto industry, led by Brian Armstrong of Coinbase, insisted on interest-bearing Stablecoins.
However, the American banking sector reportedly lobbyed strongly. This was not unexpected, because such a position would compete directly with traditional interest -bearing products such as money market funds.
The analysts added that last year the American money market funds had attracted more than $ 900 billion in inflow. Stablecoins would have eaten in this share if it can be admitted.
Now the only growth path for the ‘payment stablecoins’ would be due to the total payment segment or the wider crypto extension, the analysts noted.
Based on this, the segment can control around 7-8% of the total crypto-market size.
However, the analysts said that proceeds -bearing stablecoins bring forward institutional players, such as BlackRock’s Buuidl and Franklin Templeton’s Benji, perhaps experience enormous growth.
That said, the Senate Genius Act has cleared an important obstacle, making the hope for a potentially stablecoin regulating framework per Q3 2025.
In general, Stablecoin’s market size achieved a record of $ 249.5 billion, an increase of +280% of $ 65 billion at the start of the current Crypto Bull Run in 2023.
It will be interesting to see how Crypto-Native Stablecoins compete with probable bank-ran digital dollars.