Tokenized money market funds are the shiny new thing in crypto’s institutional toolkit. They offer yield, they live on blockchains, and they’ve attracted some of the biggest names in traditional finance. But according to JPMorgan’s own analysts, they’re not going to dethrone stablecoins anytime soon.
The bank’s research team, led by managing director Nikolaos Panigirtzoglou, pegs tokenized MMFs at roughly 5% of the stablecoin market today. Their ceiling, absent a major regulatory shake-up? Somewhere between 10% and 15%.
The numbers in context
The nine largest tokenized money market funds collectively manage about $8 billion in assets. That sounds impressive until you remember the stablecoin market dwarfs it entirely, with USDT and USDC alone controlling over 80% of the space.
Tokenized MMFs do something stablecoins generally don’t: they generate yield. Think of them as a blockchain-native version of parking your cash in a government money market fund, except the shares exist as tokens on Ethereum or similar networks.
