{"id":29360,"date":"2026-05-21T20:27:32","date_gmt":"2026-05-21T20:27:32","guid":{"rendered":"https:\/\/bitunikey.com\/news\/why-jpmorgan-says-tokenized-funds-cant-beat-stablecoins\/"},"modified":"2026-05-21T20:27:38","modified_gmt":"2026-05-21T20:27:38","slug":"why-jpmorgan-says-tokenized-funds-cant-beat-stablecoins","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/why-jpmorgan-says-tokenized-funds-cant-beat-stablecoins\/","title":{"rendered":"Why JPMorgan says tokenized funds can\u2019t beat stablecoins"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">JPMorgan says tokenized funds make up just 5% of the stablecoin market despite offering higher yield.<\/p>\n<div id=\"cn-block-summary-block_f09711f51a4bddddd9eaabfb1c2100ea\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>JPMorgan said in a May 21 report that tokenized money market funds represent only about 5% of total stablecoin market supply.<\/li>\n<li>Stablecoins retain dominance as the default cash instrument across exchanges, DeFi protocols and cross-border payment systems.<\/li>\n<li>JPMorgan expects tokenized funds to grow faster than stablecoins but sees a 10-15% ceiling absent meaningful regulatory reform.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>JPMorgan published a report on May 21 finding tokenized funds account for just 5% of total stablecoin market supply despite offering higher yield. The bank said stablecoins remain the default cash instrument across trading, collateral and payments.<\/p>\n<p>The report found stablecoins dominate because they are seamlessly integrated into centralised exchanges, DeFi protocols and cross-border payment systems. Tokenized funds require additional subscription and redemption steps, limiting their use in high-frequency on-chain activity.<\/p>\n<h2 class=\"wp-block-heading\">Why stablecoins keep winning despite lower yields<\/h2>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">JPMorgan says tokenized money market funds unlikely to grow beyond 15% of stablecoin market <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/q9fuRz22pJ\">https:\/\/t.co\/q9fuRz22pJ<\/a><\/p>\n<p>\u2014 The Block (@TheBlockCo) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/TheBlockCo\/status\/2057503751036977480?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">May 21, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>JPMorgan pointed to a streamlined SEC process introduced this year to simplify on-chain money market fund issuance. However, the bank described these developments as \u201cmarginal\u201d and unlikely to overcome stablecoins\u2019 structural liquidity advantage.<\/p>\n<p>Crypto.news has reported on JPMorgan\u2019s JLTXX fund launch on Ethereum in May 2026, structured to meet GENIUS Act reserve requirements for stablecoin issuers. Crypto.news has also tracked JPMorgan\u2019s earlier MONY fund launch in December 2025, seeding its first move onto a public blockchain.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h3 class=\"wp-block-heading\">What it would take to change the balance<\/h3>\n<p>JPMorgan\u2019s ceiling of 10-15% depends on regulatory changes the bank called unlikely in the near term. Without rules allowing tokenized funds to function like stablecoins across exchanges and payment rails, yield alone cannot close the gap.<\/p>\n<p>\u201cInvestors are increasingly looking for ways to modernize liquidity management without changing the fundamentals of what they own,\u201d said John Donohue, Head of Global Liquidity at J.P. Morgan Asset Management.<\/p>\n<p>The stablecoin market stands at roughly $240 billion, meaning a 10% tokenized fund share would represent $24 billion in assets. Crypto.news has also noted JPMorgan\u2019s view that tokenization will reshape the funds industry, though the bank\u2019s own data suggests the stablecoin moat runs deeper than the yield gap implies.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>JPMorgan says tokenized funds make up just 5% of the stablecoin market despite offering higher yield. Summary JPMorgan said in a May 21 report that tokenized money market funds represent&hellip;<\/p>\n","protected":false},"author":1,"featured_media":6958,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-29360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/29360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=29360"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/29360\/revisions"}],"predecessor-version":[{"id":29361,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/29360\/revisions\/29361"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/6958"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=29360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=29360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=29360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}