JPMorgan Says Stablecoins Dominate Crypto as Tokenized Funds Stay Near 5%

6 articles · Updated · CoinDesk · May 21

Tokenized money market funds account for only about 5% of the stablecoin universe, and JPMorgan says they are unlikely to exceed 10%-15% without regulatory change.
Securities classification is the main constraint: registration, disclosure, reporting and transfer rules limit tokenized funds' ability to circulate across exchanges and DeFi like stablecoins do.
Stablecoins still serve as crypto's default cash instrument for trading, collateral, settlement, cross-border payments and liquidity management, preserving their edge despite offering no yield.
JPMorgan expects tokenized funds to keep growing faster because they are interest-bearing, but says demand remains concentrated among yield-seeking crypto investors and institutions using them as collateral.
An SEC streamlining process and new TradFi-crypto partnerships may help at the margin, the bank said, but not enough to erase stablecoins' structural advantage.

With giants like BlackRock moving on-chain, are tokenized funds the future of investing or just a crypto niche?

JPMorgan's report doubts tokenized funds, yet its asset arm just launched one. What is their real strategy?