Stablecoins keep edge over tokenized money market funds, JPMorgan says
JPMorgan reports that tokenized money market funds remain only about 5% of the stablecoin universe, as stablecoins dominate as the default cash instrument for crypto trading, collateral, and payments.
Tokenized money market funds still make up only around 5% of the stablecoin universe despite their ability to generate yield, Wall Street bank JPMorgan said in a Wednesday report.
The bank said crypto market participants continue to favor stablecoins because they have become the ecosystem’s default cash instrument for trading, collateral management, settlement, cross-border payments and liquidity management across centralized exchanges (CEX) and decentralized finance (DeFi) protocols.
According to the report, money market funds face a “structural regulatory disadvantage” because they are classified as securities, subjecting them to registration, disclosure, reporting and transfer restrictions. This regulatory burden limits their flexibility and adoption compared to stablecoins, which operate under lighter regulatory frameworks in many jurisdictions. For crypto traders, the convenience and liquidity of stablecoins outweigh the yield advantage of tokenized money market funds, especially in fast-moving markets where instant settlement is critical.
Looking ahead, the competition between stablecoins and tokenized money market funds may intensify if regulatory clarity improves for the latter. However, JPMorgan notes that stablecoins have a first-mover advantage and deep integration into crypto infrastructure. Traders can monitor live prices and charts on NowPrice to track how shifts in stablecoin supply or regulatory news impact crypto markets. The report suggests that tokenized money market funds may need to overcome structural hurdles to gain meaningful market share, but their growth potential remains significant as the crypto ecosystem matures.