JPMorgan Predicts Yield Stablecoins Could Capture Half the Market

A new JPMorgan research report highlights the rapid rise of yield-bearing stablecoins and predicts their market share could jump from 6% to as high as 50% of the stablecoin sector in coming years (JPMorgan: "Yield-Generating Stablecoins Could Expand Market Share up to 50%" (feat. USDe, BUIDL)). These tokens (such as Ethena’s USDe, Ondo’s USDY, and others) collectively grew from about $4 billion to $13 billion in market cap since November’s U.S. elections (JPMorgan: "Yield-Generating Stablecoins Could Expand Market Share up to 50%" (feat. USDe, BUIDL)). Yield stablecoins attract investors by offering interest similar to money market funds in today’s high-rate environment (JPMorgan: "Yield-Generating Stablecoins Could Expand Market Share up to 50%" (feat. USDe, BUIDL)) (JPMorgan: "Yield-Generating Stablecoins Could Expand Market Share up to 50%" (feat. USDe, BUIDL)). JPMorgan analysts note that major trading platforms now accept tokenized U.S. Treasurys as collateral and DeFi protocols are using them for higher returns, driving demand (JPMorgan: "Yield-Generating Stablecoins Could Expand Market Share up to 50%" (feat. USDe, BUIDL)). While regulatory hurdles (these tokens are treated as securities) could slow retail adoption, the bank sees significant growth ahead as institutions embrace yield-generating crypto assets.

Source: Blockmedia (via JPMorgan report) – Yield-bearing stablecoins could reach 50% of market (JPMorgan: "Yield-Generating Stablecoins Could Expand Market Share up to 50%" (feat. USDe, BUIDL)) (JPMorgan: "Yield-Generating Stablecoins Could Expand Market Share up to 50%" (feat. USDe, BUIDL))