JPMorgan strategists say stablecoins and tokenized real-world assets are becoming increasingly intertwined with traditional finance, according to a Bloomberg report.
JPMorgan: Stablecoins Processed $27T in 2024, Now Entering TradFi
WRITTEN BY
SHARE
JPMorgan Flags Stablecoin Growth, Warns Against Overhype
A growing convergence between digital assets and traditional finance is underway, JPMorgan strategists noted this week, highlighting two major developments: the integration of stablecoins into mainstream financial systems and a rapid uptick in the tokenization of real-world assets ( RWAs), Bloomberg reported.
The remarks were made in the context of a new partnership between Goldman Sachs and Bank of New York Mellon to tokenize shares of money-market funds. JPMorgan called the deal a “significant leap forward” for the $7 trillion-plus money-market fund sector, pointing to greater liquidity and efficiency without compromising regulatory safeguards like the 2a-7 rule.
Stablecoins—blockchain-based tokens pegged to fiat currencies such as the U.S. dollar—processed more than $27 trillion in volume in 2024 alone, surpassing Visa and Mastercard combined. JPMorgan said its integration with banks, payment firms, and regulatory frameworks signals rising institutional confidence.
Visa, Mastercard and Paypal have adopted stablecoins for settlements, while the U.S. Senate’s GENIUS Act in 2025 established a clearer legal footing for the assets. JPMorgan, once skeptical, has launched several blockchain efforts through its Kinexys unit. These include JPMD, a tokenized deposit issued on Coinbase’s Base chain for institutional clients, and the Tokenized Collateral Network (TCN), which enables real-world assets to be used as blockchain-based collateral.
The report further says the firm sees tokenization as a way to bring Wall Street infrastructure to broader markets. Global institutions are now using tokenized U.S. Treasuries for streamlined access to dollar exposure, and firms like Blackrock and Franklin Templeton are offering tokenized money-market funds.
Despite the progress, JPMorgan remains cautious. While some analysts project stablecoins could grow into a trillion-dollar asset class, the bank expects a more modest $500 billion market by 2028, citing regulatory hurdles and geopolitical complexities.
