{"id":48490,"date":"2025-09-19T15:16:48","date_gmt":"2025-09-19T15:16:48","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=48490"},"modified":"2025-09-19T15:16:48","modified_gmt":"2025-09-19T15:16:48","slug":"u-s-stablecoin-battle-could-be-zero-sum-game-jpmorgan","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=48490","title":{"rendered":"U.S. Stablecoin Battle Could Be Zero-Sum Game: JPMorgan"},"content":{"rendered":"
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The $270 billion stablecoin sector has grown significantly but still accounts for less than 8% of crypto\u2019s total market cap, a level it has held since 2020, according to a JPMorgan research note.<\/p>\n

That dynamic could turn the coming wave of U.S. stablecoin launches into a zero-sum contest, unless the crypto market itself expands significantly, analysts led by Nikolaos Panigirtzoglou wrote.<\/p>\n

Tether, whose USDT is primarily used overseas, plans to debut a U.S.-compliant token<\/a>, USAT. Unlike USDT, whose reserves are about 80% compliant with U.S. requirements, USAT\u2019s backing would fully meet the new regulatory standards, the bank said.<\/p>\n

Stablecoins are cryptocurrencies<\/a> whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets, providing a payment infrastructure, and are also used to transfer money internationally. Tether’s USDT is the largest stablecoin, followed by Circle’s (CRCL) USDC.<\/p>\n

The passage of U.S. stablecoin legislation<\/a> in July has already spurred a fresh round of launches aimed at Circle\u2019s USDC, which dominates the U.S. market, the report noted.<\/p>\n

While new players are jockeying for position ahead of regulatory implementation, the stablecoin market\u2019s growth remains tied to crypto\u2019s overall market cap, the analysts wrote.<\/p>\n

Circle is also losing ground to competitors like Hyperliquid, whose exchange alone accounts for nearly 7.5% of USDC usage, as well as fintech giants PayPal (PYPL), Robinhood (HOOD), and Revolut, which are rolling out their own tokens, JPMorgan said.<\/p>\n

In response, Circle is developing Arc<\/a>, a blockchain tailored to USDC transactions, to improve speed, security, and interoperability and keep USDC central to crypto infrastructure.<\/p>\n

Without significant expansion, the new wave of stablecoin competition may simply redistribute market share rather than grow the pie, the report added.<\/p>\n

USDC supply has surged to $72.5 billion, 25% ahead of Wall Street firm Bernstein’s 2025 estimates, the broker said in a report earlier this month.<\/p>\n

Read more: Circle’s USDC Market Share ‘On a Tear,’ Says Wall Street Broker Bernstein<\/span><\/a><\/em><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The $270 billion stablecoin sector has grown significantly but still accounts for less than 8% of crypto\u2019s total market cap, a level it has held since 2020, according to a JPMorgan research note. That dynamic could turn the coming wave of U.S. stablecoin launches into a zero-sum contest, unless the crypto market itself expands significantly, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-48490","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/48490","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48490"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/48490\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48490"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48490"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48490"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}