Stablecoins retain the edge over tokenized money market funds, JPMorgan says

CoinDeskMay 213 min readVerified

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Stablecoins retain the edge over tokenized money market funds, JPMorgan saysThe bank said tokenized money market funds account for only about 5% of the broader stablecoin universe despite offering yield.
By putting fund shares onchain, tokenized funds can enable near-instant settlement, 24/7 transfers, automated compliance and more efficient collateral management.
The bank pointed to a streamlined Securities and Exchange Commission (SEC) process introduced earlier this year to simplify the issuance and redemption of onchain money market funds.

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Stablecoins retain the edge over tokenized money market funds, JPMorgan saysThe bank said tokenized money market funds account for only about 5% of the broader stablecoin universe despite offering yield. May 21, 2026, 12:49 p.m. 2 min readMake preferred on Tokenized money market funds still make up only around 5% of the stablecoin universe despite their ability to generate yield, Wall Street bank JPMorgan said in a Wednesday report.The bank said crypto market participants continue to favor stablecoins because they have become the ecosystem’s default cash instrument for trading, collateral management, settlement, cross-border payments and liquidity management across centralized exchanges (CEX) and decentralized finance (DeFi) protocols.According to the report, money market funds face a “structural regulatory disadvantage” because they are classified as securities, subjecting them to registration, disclosure, reporting and transfer restrictions that limit their ability to circulate freely within the crypto ecosystem."We doubt that tokenized money market funds would grow beyond 10%-15% or so of the stablecoin universe, unless there is a regulatory change that reduces the structural disadvantage arising from tokenized money market funds classified as securities," wrote analysts led by Nikolaos Panigirtzoglou.As a result, the bank's analysts said demand for tokenized money market funds is largely confined to crypto-native investors seeking yield on idle cash and institutional investors looking to combine blockchain-based settlement and programmability with traditional investor protections.Advocates of tokenized money market funds say the products combine the safety and yield of traditional cash-management vehicles with the speed and flexibility of blockchain networks. By putting fund shares onchain, tokenized funds can enable near-instant settlement, 24/7 transfers, automated compliance and more efficient collateral management. Proponents also argue that tokenization can reduce operational costs, improve transparency and allow assets to move more seamlessly across trading, treasury and payments systemsTokenized money market funds promise faster settlement and broader access, but they still face risks tied to liquidity, counterparty exposure, regulatory uncertainty and the underlying stability of the traditional assets backing the tokens.These tokenized funds are likely to continue growing faster than stablecoins because of their interest-bearing nature, the analysts said, but it is unlikely they will expand beyond 10%-15% of the stablecoin market absent meaningful regulatory changes.Regulators have offered only limited support so far. The bank pointed to a streamlined Securities and Exchange Commission (SEC) process introduced earlier this year to simplify the issuance and redemption of onchain money market funds. The report also highlighted emerging partnerships between traditional finance firms and crypto-native companies that allow institutions to use tokenized money market funds as off-exchange trading collateral while still earning yield.Still, these developments are “marginal” and unlikely to overcome the broader regulatory disadvantages that prevent tokenized money market funds from matching the seamless utility of stablecoins across crypto markets, the report added.Read more: Mike Cagney’s second act: Turning blockchain into Wall Street’s new plumbingAI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.More For YouWith MoonPay Trade, the crypto payments firm is building infrastructure for banks, fintechs to access stablecoins, tokenized funds and yield in a one-stop shop.What to know: MoonPay is expanding beyond crypto payments to give banks and fintechs access to tokenized assets, DeFi and stablecoin liquidity across more than 200 blockchains.The platform is underpinned by Decent.xyz, the cross-chain startup MoonPay acquired, and will support the firm's financial institutional business led by former acting CFTC Chair Caroline...Read full story

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Bitcoin stabilizes near $63,000, but reclaiming $64,000 is the real test Bitcoin is stabilizing near $63,100 after buyers defended the lower part of its recent range. That is constructive, but it is not yet a confirmed recovery. BTC must first overcome resistance near $63,175-$63,270, while reclaiming and holding $64,000-$64,095 remains the more important test. Key takeaways for Bitcoin traders and investors Current position: BTC is holding above the previous month’s lower value boundary near $62,380. Immediate resistance: Buyers need to clear $63,130-$63,175, followed by $63,247-$63,270. Main recovery test: A sustained reclaim of $64,000-$64,095 would carry much more weight than a temporary bounce near $63,000. Major support: The broader $62,380-$62,535 region remains the most important defended zone. Bullish confirmation: Repeated closes, consolidation or a successful retest above $64,095 would show that Bitcoin is beginning to establish higher accepted value. 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Price subsequently recovered toward $63,100, strengthening the case that buyers are willing to defend the lower part of the previous month’s trading range. What stands out to me, however, is how little upward progress followed that buying. Several periods showed positive buying pressure, but BTC remained concentrated around $63,050 and repeatedly struggled to extend beyond $63,150-$63,175. In simple terms, buyers have shown that they can slow the decline, but they have not yet shown that they can move Bitcoin into a clearly higher trading range. This is the difference between stabilization and recovery: Stabilization means sellers are no longer pushing price lower with the same ease. Recovery means buyers are lifting price, holding above resistance and shifting the market’s most active trading area higher. Bitcoin has shown the first condition. The second still needs confirmation. 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