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 only about 5% of total stablecoin market supply.
- Stablecoins retain dominance as the default cash instrument across exchanges, DeFi protocols and cross-border payment systems.
- JPMorgan expects tokenized funds to grow faster than stablecoins but sees a 10-15% ceiling absent meaningful regulatory reform.
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.
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.
Why stablecoins keep winning despite lower yields
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 “marginal” and unlikely to overcome stablecoins’ structural liquidity advantage.
Crypto.news has reported on JPMorgan’s JLTXX fund launch on Ethereum in May 2026, structured to meet GENIUS Act reserve requirements for stablecoin issuers. Crypto.news has also tracked JPMorgan’s earlier MONY fund launch in December 2025, seeding its first move onto a public blockchain.
What it would take to change the balance
JPMorgan’s 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.
“Investors are increasingly looking for ways to modernize liquidity management without changing the fundamentals of what they own,” said John Donohue, Head of Global Liquidity at J.P. Morgan Asset Management.
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’s view that tokenization will reshape the funds industry, though the bank’s own data suggests the stablecoin moat runs deeper than the yield gap implies.
