JPMorgan analyzed that tokenized money market funds (MMFs) remain at approximately 5% of the total stablecoin market, despite offering returns. According to CoinDesk, JPMorgan explained, "Stablecoins have established themselves as a core cash equivalent in the cryptocurrency ecosystem for transactions, collateral, settlements, and DeFi liquidity management. In contrast, tokenized MMFs are classified as securities and face regulatory burdens such as registration, disclosure, and transfer restrictions." JPMorgan also projected that the size of the tokenized MMF market would likely not exceed 10-15% of the stablecoin market unless there are regulatory changes. However, there is also an analysis in the market that the growth of tokenized MMFs itself could continue, driven by increasing demand for on-chain payments and collateral utilization, especially among institutional investors.
