JPMorgan sees tokenized money market funds topping out at 15% of the stablecoin market.

JPMorgan analysts have concluded that tokenized money market funds are unlikely to capture more than 15% of the broader stablecoin market, putting a structural ceiling on one of the more hyped growth narratives in crypto-adjacent finance.

The bank's scepticism centres on the fundamental difference in utility: stablecoins are optimised for fast, permissionless settlement and on-chain liquidity, while tokenized MMFs carry redemption friction, regulatory overhead, and yield-sharing mechanics that limit their appeal as a medium of exchange. The 15% cap implies the two products serve different demand pools rather than competing head-to-head.

For investors tracking the stablecoin sector, the read is that dominant issuers — those already entrenched in the payments and DeFi rails — face less displacement risk from TradFi tokenization than the bull case assumed.