Opinion: Tokenized money market funds face "structural regulatory disadvantages," making it difficult to surpass 15% of the stablecoin market size

robot
Abstract generation in progress

BlockBeats News, May 22 — JPMorgan analysts pointed out in a report that although tokenized money market funds can offer returns to investors, they currently account for only about 5% of the total stablecoin market capitalization. Stablecoins dominate the crypto ecosystem and are widely used for trading, collateral management, clearing, cross-border payments, and daily liquidity tools, while tokenized funds face "structural regulatory disadvantages" — they are typically classified as securities, subject to registration, disclosure, reporting, and transfer restrictions, making free circulation on-chain difficult.

Analysts expect tokenized money market funds to continue growing, but under the current regulatory framework, it will be difficult for them to surpass 10%-15% of the stablecoin market. Unless regulatory policies are adjusted to mitigate the adverse effects of securities classification, their main users will remain crypto-native investors seeking returns on idle funds and institutional investors looking to leverage the advantages of tokenized operations. Current regulatory improvements are only marginal and cannot fundamentally change the landscape of both.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 11
  • 7
  • Share
Comment
Add a comment
Add a comment
Half-MeltedIceCreamUnderThe
· 2h ago
Retail investors are too lazy to even do KYC, and you're still hoping to buy securities-based funds?
View OriginalReply0
GaslightPoet
· 8h ago
The 10%-15% cap is set so tightly that it's pointless.
View OriginalReply0
LeverageLatte
· 8h ago
Native crypto users want anonymity, not KYC.
View OriginalReply0
SpiralSeaSalt
· 9h ago
The moat of stablecoins is not profit, but liquidity.
View OriginalReply0
GateUser-3d750846
· 9h ago
The compliance costs of traditional finance moving onto the blockchain are a fatal flaw.
View OriginalReply0
GateUser-e4fb1fbe
· 9h ago
JPMorgan finally said something sensible
View OriginalReply0
GlowingHotAirBalloon
· 9h ago
Native crypto users want freedom, not just a few percentage points of annualized returns.
View OriginalReply0
Re-StakingSucculents
· 9h ago
Unless the SEC agrees, breaking the 10% daily cap will be very difficult.
View OriginalReply0
NightTideShell
· 9h ago
Registering and disclosure processes, the DeFi spirit is directly nullified.
View OriginalReply0
WhitepaperByTheRoadside
· 9h ago
RWA Player: I'm having such a hard time.
View OriginalReply0
View More
  • Pinned