JPMorgan: Tokenized MMFs have limited ability to replace stablecoins

JPMorgan has analyzed that tokenized money market funds (MMFs) account for only about 5% of the total stablecoin market, despite offering yields. According to CoinDesk, the bank explained that stablecoins are established as the core cash instrument within the crypto ecosystem for trading, collateral, settlement, and DeFi liquidity management. In contrast, tokenized MMFs are classified as securities, subjecting them to regulatory burdens such as registration, disclosure, and transfer restrictions. JPMorgan projected that without regulatory changes, the tokenized MMF market is unlikely to exceed 10% to 15% of the stablecoin market. However, some market analysis suggests that the growth of tokenized MMFs could continue, driven by expanding demand from institutional investors for on-chain settlement and collateral.