JPMorgan Predicts $500 Billion Stablecoin Market by 2028 Driven by Crypto Demand

JPMorgan Chase & Co. has released a report predicting that the stablecoin market will reach $500 billion by 2028. This projection is led by Nikolaos Panigirtzoglou, who is known for his work on digital asset market strategies. The report highlights that the growth of stablecoins is primarily driven by internal demand within the crypto markets, such as trading and decentralized finance (DeFi) activities. As of mid-2025, the circulating supply of stablecoins reached $254 billion, indicating ongoing growth trends.

The report also critiques the perception that stablecoins will replace traditional currencies for everyday transactions. According to Panigirtzoglou, "The idea that stablecoins will replace traditional money for everyday use is still far from reality." This conservative view reflects JPMorgan's skepticism about the mainstream financial replacement of stablecoins. The report suggests that the growth of stablecoins is predominantly fueled by internal uses within the crypto markets, with limited impact on broader financial systems.

Despite the expanding influence of stablecoins in the crypto sectors, the broader financial adoption continues to face barriers. Factors such as regulatory challenges and limited mainstream acceptance persist. The report also notes that recent legislation, such as the GENIUS Act, has not significantly shifted external usage patterns. The historic growth in the stablecoin market cap mirrors earlier events, notably the 2020–2021 period, driven by speculative activities. Tokens such as USDT, USDC, and DAI are notably affected by these market dynamics, indicating persistent internal demand.

Potential outcomes from JPMorgan's forecast suggest that the crypto market's reliance on stablecoins will continue. However, if properly harnessed, stablecoins may experience incremental growth outside the crypto sphere. Regulatory developments will likely shape future trajectories and impact financial ecosystems. The report underscores the need for increased adoption and integration of stablecoins into mainstream financial systems if they are to reach their full potential. This cautious outlook challenges the more optimistic predictions that have circulated in the market, suggesting that the growth of stablecoins may not be as rapid or widespread as some had anticipated.