JPMorgan Chase: Stablecoins still superior to tokenized money market funds in liquidity and application

May 21st News, according to CoinDesk, JPMorgan Chase stated in its latest report that although tokenized money market funds (tokenized MMFs) can provide interest income, they currently account for only about 5% of the overall stablecoin market. The report points out that stablecoins have become the default "cash" tool in the crypto market due to their widespread use in trading, collateral, settlement, and cross-border payments in centralized exchanges and DeFi. In contrast, tokenized MMFs are classified as securities and must comply with registration, disclosure, and transfer restrictions, limiting their circulation on-chain. JPMorgan Chase expects that if the regulatory framework is not adjusted, the share of tokenized MMFs will hardly exceed 10%-15% of the stablecoin market. Current demand mainly comes from crypto-native institutions seeking returns on idle funds and institutional investors who want to balance on-chain settlement with traditional regulatory protection.