Counterparty risk and regulatory uncertainty, two towering mountains weighing down.

JPMorgan's latest report states that tokenized money market funds offer returns, but account for about 5% of the stablecoin system, and are unlikely to challenge the core position of stablecoins in the short term. Stablecoins are the default cash tools for trading, collateralization, and settlement, while tokenized funds are limited by their securities nature, making it difficult to surpass 10%-15% of stablecoin market size. Growth is constrained by liquidity, counterparty risk, and regulatory uncertainty, and without regulatory easing, they will struggle to replace stablecoins' infrastructural role.