“JPMorgan Predicts Yielding Stablecoins Could Capture 50% of Market Share
JPMorgan analysts are forecasting significant growth in the yielding stablecoin sector, including those tied to tokenized U.S. Treasuries, with predictions that they could eventually make up 50% of the stablecoin market.
Currently, yielding stablecoins account for only 6% of the overall stablecoin market cap, but analysts believe this could change dramatically in the near future, barring any major regulatory hurdles.
Led by Managing Director Nikolaos Panigirtzoglou, the JPMorgan report highlights how the market value of the leading yielding stablecoins—such as Ethena’s USDe, Sky Dollar’s USDS, BlackRock’s BUIDL, Usual Protocol’s USD0, and Ondo Finance’s USDY—has seen significant growth since the U.S. elections in November.
Their combined market cap has surged from around $4 billion to over $13 billion, a trend that analysts expect will continue as demand for these assets grows. This growth is also attributed to recent developments in regulatory approvals and market adoption.
One notable factor driving this expansion is the U.S. Securities and Exchange Commission’s (SEC) approval of Figure Markets’ YLDS stablecoin, which is registered as a security. This regulatory step could pave the way for broader adoption of yielding assets, which provide interest or yield on the reserve assets backing them.
In comparison, traditional stablecoins like Tether’s USDT and Circle’s USDC do not distribute yield to users, primarily because offering such a feature would reclassify them as securities and subject them to stricter compliance and regulatory oversight.
As more yielding stablecoins gain regulatory clarity and institutional support, this segment of the market is expected to become a major force within the broader stablecoin ecosystem, potentially reshaping the way digital currencies are used for both investment and transactional purposes.
Editorial Team
Reporter at Coindoo
