JPMorgan Warns U.S. Stablecoin Growth May Be Limited
JPMorgan analysts suggest that new U.S. stablecoin launches may not expand the market but rather redistribute existing market share.
The $270 billion stablecoin sector continues to represent less than 8% of the total crypto market cap, a proportion unchanged since 2020. Tether’s planned USAT token will be fully U.S.-compliant, in contrast to USDT, whose reserves are about 80% aligned with regulations.
Circle’s USDC remains the market leader, but growing competition from Hyperliquid and fintech firms such as PayPal, Robinhood, and Revolut is challenging its dominance. In response, Circle is developing Arc, a blockchain optimized for USDC transactions.
JPMorgan analysts concluded that without growth in the broader crypto market, stablecoin competition could effectively become zero-sum.
