JPMorgan analysts forecast stablecoin market growth to $600 billion, driven by crypto activity.

JPMorgan projects the stablecoin market could grow to $500-$600 billion by 2028. This analysis, led by Teresa Ho, emphasizes growth driven by crypto trading rather than broader financial sector adoption.

Teresa Ho, Head of U.S. Short Duration Strategy, leads the forecast. Stablecoin growth is linked to the crypto market’s expansion and predominantly driven by Tether and Circle, covering 90% of the market share.

The primary impact is on USD-denominated stablecoins, crucial for crypto trading liquidity. These coins already constitute a vast share of the market, which is essential for exchanges and derivatives trading.

Financial implications are closely tied to the broader crypto market cap and derivatives exchanges. Teresa Ho stated, “The GENIUS Act could further accelerate stablecoin adoption, moving this asset class more mainstream and further fueling the growth of this market.”

Stablecoin growth shows a consistent link with the increasing crypto market cap. Market expansion aligns with the adoption of technologies enhancing digital asset trading mechanisms, despite lacking historical macroeconomic parallels.

Analysts predict potential outcomes involving regulatory developments and technological advancements supporting stablecoin transitions into the mainstream. Historical trends emphasize consistent growth despite fluctuating crypto market conditions.