U.S. Stablecoin Battle Could Pit Winners Against Losers, JPMorgan Notes

Stablecoin Market Faces Zero-Sum Risk, JPMorgan Says

The U.S. stablecoin market could turn into a zero-sum contest unless the overall crypto sector expands, JPMorgan analysts warned.

Tether plans to debut USAT, a fully U.S.-compliant stablecoin, while USDT remains partially aligned with U.S. requirements. Circle’s USDC, the largest U.S. stablecoin, faces rising competition from Hyperliquid, PayPal, Robinhood, and Revolut, which are launching their own tokens.

Circle is developing Arc, a blockchain tailored for USDC transactions, to improve speed, security, and interoperability. The stablecoin market’s growth, JPMorgan noted, remains closely tied to crypto’s total market capitalization, which limits overall expansion.