JPMorgan Chase: Stablecoins still outperform tokenized money market funds in terms of liquidity and application.

In its latest report, JPMorgan Chase stated that while tokenized money market funds (MMFs) offer interest income, they currently only account for about 5% of the overall stablecoin market. The report points out that stablecoins, widely used in centralized exchanges and DeFi for trading, collateralization, settlement, and cross-border payments, have become the de facto "cash" tool in the crypto market. In contrast, tokenized MMFs, classified as securities, are subject to registration, disclosure, and transfer restrictions, limiting their on-chain circulation. JPMorgan Chase predicts that without adjustments to the regulatory framework, the share of tokenized MMFs will struggle to exceed 10%–15% of the stablecoin market. Current demand primarily comes from crypto-native institutions seeking returns on idle funds and institutional investors looking to balance on-chain settlement with traditional regulatory protections.