JPMorgan Chase: Stablecoin supply may reach $500 billion to $600 billion in 2028, far below optimistic expectations.

According to a report by Coindesk, JPMorgan Chase stated that the supply of stablecoins could reach $500 billion to $600 billion by 2028, far lower than the most optimistic forecast of $2 trillion to $4 trillion. They indicated that the demand for stablecoins is primarily driven by the crypto market, not payments. JPMorgan Chase pointed out that the stablecoin market has grown by approximately $100 billion this year, reaching about $308 billion, with Tether's USDT and Circle's USDC leading this growth. Demand remains primarily driven by cryptocurrency trading and collateral needs in derivatives and DeFi, with derivatives trading venues adding approximately $20 billion in stablecoin holdings. Analysts stated that the payment business is currently a smaller driver, but it could grow as more service providers test stablecoin-based cross-border transfer channels. However, wider payment usage does not necessarily require a larger stablecoin circulation, as token velocity may increase with deeper integration. In addition, banks and payment networks are also securing their position in institutional money flows through tokenized deposits and other blockchain initiatives, while CBDC initiatives may offer a regulated alternative to compete with private stablecoins.