U.S. Stablecoin Race May Be Zero-Sum, Says JPMorgan

JPMorgan: U.S. Stablecoin Competition Could Become Zero-Sum

The next wave of U.S. stablecoin launches may simply reshuffle market share rather than expand the sector, JPMorgan analysts warned.

The $270 billion stablecoin market has grown steadily but still represents under 8% of crypto’s total market capitalization—a level it has maintained since 2020, according to research led by Nikolaos Panigirtzoglou. The bank cautioned that without significant expansion in the broader crypto market, the incoming stablecoins could trigger a zero-sum battle.

Tether plans to launch USAT, a U.S.-compliant token fully meeting regulatory standards, unlike its current USDT, which is roughly 80% compliant. Meanwhile, Circle’s USDC remains the leading U.S. stablecoin, though competitors including Hyperliquid, PayPal, Robinhood, and Revolut are challenging its dominance.

Circle is responding with Arc, a blockchain designed for faster, more secure, and interoperable USDC transactions, aiming to maintain its central role in crypto infrastructure.