Stablecoins Remain Dominant as Tokenized Money Market Funds Face Regulatory Limits

JPMorgan analysts say tokenised money‑market funds are expanding but currently represent only about 5% of the stablecoin market and are unlikely to grow beyond 10‑15% of that market without significant regulatory reform. Because they are classified as securities, these funds must meet registration, disclosure and transfer restrictions that hinder their free circulation on‑chain, whereas stablecoins, widely used for payments, trading, collateral and settlement, face fewer obstacles.

At the same time, the Trump administration is allocating $2 billion to nine quantum‑computing firms, and European banks are advancing tokenised settlement infrastructure. Societe Generale, its crypto arm SG‑Forge and broker flatexDEGIRO have joined Boerse Stuttgart Group’s Seturion platform to issue tokenised securities and settle trades using MiCA‑authorized stablecoins such as EURCV and USDCV. These initiatives illustrate a broader push for regulated crypto‑finance solutions while tokenised money‑market products remain a niche offering.