Stablecoin News – JPMorgan issued a cautious forecast on July 7, 2025, projecting the stablecoin market to grow to $500 billion by 2028, significantly lower than the $1-2 trillion estimates from some industry analysts. The bank’s report highlights limited mainstream adoption beyond cryptocurrency trading, despite stablecoins’ dominance in over-the-counter (OTC) markets, where they account for 74.6% of institutional trading volume in 2025, up from 46% in 2024. This growth reflects stablecoins’ utility as a stable store of value in volatile crypto markets.
The report contrasts with optimistic projections, such as U.S. Treasury Secretary Scott Bessent’s $2 trillion forecast, driven by regulatory clarity from the GENIUS Act. JPMorgan argues that stablecoins remain niche, with little evidence of widespread use in everyday transactions or traditional finance.
However, institutional interest is rising, particularly in Hong Kong, where the upcoming licensing regime is spurring stablecoin development. The bank notes that stablecoins like USDT and USDC are increasingly used for cross-border payments, but regulatory hurdles and trust issues, such as reserve transparency, pose challenges.
Hong Kong’s framework, set to launch on August 1, could catalyze growth, but JPMorgan remains skeptical of exponential expansion. The bank’s $500 billion estimate accounts for stablecoins’ role in DeFi and trading but doubts their ability to disrupt global finance without broader adoption.
Meanwhile, on July 7 noted a stablecoin supply nearing $260 billion, suggesting steady but not explosive growth. JPMorgan’s conservative outlook highlights the need for clearer regulations and real-world use cases to unlock stablecoins’ full potential.
