In the 240 billion market, tokenized funds account for only 5%, with a ceiling of just 15%, and structural disadvantages are hard to overcome.

JPMorgan Chase reports that tokenized funds account for only 5% of the stablecoin market, despite offering higher yields. The report states that stablecoins remain the default cash instrument for trading, collateralization, and payments due to their seamless integration with centralized exchanges, decentralized finance protocols, and cross-border payment systems. JPMorgan indicates that tokenized money market funds are unlikely to grow beyond 15% of the stablecoin market. The bank notes that the simplified SEC process launched this year may facilitate the issuance of on-chain money market funds, but these developments are described as "marginal" and unlikely to overcome the structural liquidity advantages of stablecoins. The stablecoin market is approximately $240 billion, meaning a 10% share of tokenized funds would represent $24 billion in assets.