Stablecoins retain the edge over tokenized money market funds, JPMorgan says
Key takeaways
- The bank said tokenized money market funds account for only about 5% of the broader stablecoin universe despite offering yield.By Will Canny, AI Boost|Edited by Stephen Alpher May 21, 2026, 12:49 p.m.
- 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.
- Advocates of tokenized money market funds say the products combine the safety and yield of traditional cash-management vehicles with the speed and flexibility of blockchain networks.
The bank said tokenized money market funds account for only about 5% of the broader stablecoin universe despite offering yield.By Will Canny, AI Boost|Edited by Stephen Alpher May 21, 2026, 12:49 p.m. 2 min read Make preferred on Stablecoins retain edge over tokenized money market funds, JPMorgan says. (Unsplash)What to know: JPMorgan said tokenized money market funds remain a small share of the stablecoin market because of regulatory hurdles.Stablecoins continue to dominate crypto trading, collateral and payments due to their seamless use across exchanges and DeFi.The bank expects tokenized money market funds to grow, but likely not beyond 10%-15% of the stablecoin market without regulatory changes.
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.