{"id":89112,"date":"2025-09-20T16:58:21","date_gmt":"2025-09-20T13:58:21","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=89112"},"modified":"2025-09-20T17:00:20","modified_gmt":"2025-09-20T14:00:20","slug":"jpmorgan-identifies-stablecoin-race-dilemma","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/jpmorgan-identifies-stablecoin-race-dilemma\/","title":{"rendered":"JPMorgan Identifies ‘Stablecoin Race’ Dilemma"},"content":{"rendered":"

The anticipated surge in stablecoin launches in the United States could devolve into a zero-sum competition, according to CoinDesk<\/a>, citing a report from JPMorgan.<\/p>\n

Analysts at the bank, led by Nikolaos Panigirtzoglou, noted that the segment has recently grown to a substantial $270 billion. However, its share of the cryptocurrency market has remained virtually unchanged since 2020, at around 8% of total capitalization.<\/p>\n

Experts believe this trend indicates that the expected arrival of new players in the sector will merely lead to a redistribution unless the entire industry significantly expands.<\/p>\n

The adoption of the GENIUS Act in the U.S. has already triggered a wave of new asset launches, JPMorgan noted. Back in March, FT journalists highlighted plans<\/a> by some global banks and fintech companies regarding such assets, dubbing it a “stablecoin race.” Most of these projects primarily aim to compete with the U.S.-dominant USDC from Circle.<\/p>\n

In September, the largest DEX for perpetual contracts, Hyperliquid, selected<\/a> the issuer of its own USDH coin. This decentralized platform accounts for about 7.5% of the circulating USDC.<\/p>\n

The company behind USDT, Tether, introduced<\/a> USAT\u2014a stablecoin fully compliant with the GENIUS Act.<\/p>\n

Circle’s position is also potentially threatened by coins from fintech giants like PayPal (PYUSD), Robinhood, and Revolut, analysts suggest.<\/p>\n

In response, the issuer of USDC is developing Arc<\/a>\u2014a blockchain specifically tailored for stablecoin operations. The solution aims to enhance transaction speed, security, and cross-chain compatibility. The company has also deepened integration<\/a> with Hyperliquid.<\/p>\n

In June, Circle went public<\/a> on Nasdaq and subsequently applied<\/a> for a trust bank license in the U.S.<\/p>\n

The market capitalization of the leading stablecoin segment, USDT, stands at approximately $171.5 billion, while USDC is nearly $74 billion.<\/p>\n

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Source: CoinGecko<\/a>.<\/figcaption><\/figure>\n

USD1 from the DeFi platform World Liberty Financial, linked<\/a> to the family of former U.S. President Donald Trump, has risen to sixth place with a valuation of ~$2.7 billion.<\/p>\n

The supply of PYUSD, launched by PayPal in August 2023, does not exceed $1.4 billion.<\/p>\n

In September, Kyle Klemmer, co-founder of Blockstreet, the company promoting USD1, predicted<\/a> its dominance by the end of the current president’s second term in three years.<\/p>\n

Earlier, Standard Chartered noted<\/a> that clients show more interest in stablecoins than in Bitcoin.<\/p>\n

Stripe co-founder and CEO Patrick Collison explained<\/a> the popularity of stablecoins among businesses as being due to faster, cheaper, and more reliable payments compared to traditional systems.<\/p>\n","protected":false},"excerpt":{"rendered":"

The anticipated surge in stablecoin launches in the United States could devolve into a zero-sum competition, according to CoinDesk, citing a report from JPMorgan.<\/p>\n","protected":false},"author":1,"featured_media":89113,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"JPMorgan warns of a zero-sum stablecoin race in the U.S. market.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[229,1138,807],"class_list":["post-89112","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-jpmorgan","tag-opinions","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"250","promo_type":"1","layout_type":"1","short_excerpt":"JPMorgan warns of a zero-sum stablecoin race in the U.S. market.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=89112"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89112\/revisions"}],"predecessor-version":[{"id":89114,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89112\/revisions\/89114"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/89113"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=89112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=89112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=89112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}