JPMorgan: Stablecoins Process $27T in 2024 Surpassing Visa/Mastercard Combined

JPMorgan has highlighted the exponential growth of stablecoins, noting that these blockchain-based tokens processed $27 trillion in 2024—surpassing the combined transaction volumes of Visa and Mastercard [1]. The data signals a pivotal shift in the integration of stablecoins into traditional finance (TradFi), with institutional adoption accelerating as banks, payment processors, and regulators adapt to the technology. The firm’s report underscores stablecoins’ role in cross-border payments, asset tokenization, and decentralized finance (DeFi), with USD-pegged tokens serving as a bridge between crypto and legacy systems due to their speed, low cost, and compatibility with existing infrastructure.

The surge in stablecoin activity has been fueled by regulatory clarity, such as the U.S. Senate’s 2025 GENIUS Act, which provided a legal framework for stablecoins, and infrastructure advancements like JPMorgan’s Kinexys unit. The bank has launched initiatives including JPMD, a tokenized deposit on Coinbase’s Base chain for institutional clients, and the Tokenized Collateral Network (TCN), which allows real-world assets to function as blockchain-based collateral. These moves align with broader industry efforts, including a landmark partnership between Goldman Sachs and Bank of New York Mellon to tokenize money-market fund shares. JPMorgan described the initiative as a “significant leap forward” for the $7 trillion sector, enabling greater liquidity while adhering to regulatory safeguards like the 2a-7 rule [1].

Despite the optimism, JPMorgan cautions against overestimating stablecoin potential. While some analysts forecast the asset class could grow to $1 trillion, the bank projects a more conservative $500 billion market by 2028, citing regulatory hurdles, geopolitical tensions, and the risks associated with non-USD-pegged models [1]. The firm emphasizes the need for a “coherent framework” to govern stablecoins, as fragmented policies could stifle innovation. This aligns with global regulatory efforts, such as those by the G20 and FATF, to standardize stablecoin governance.

The implications for TradFi institutions are profound. JPMorgan estimates stablecoins could capture 10% of global payment volume by 2026, compelling legacy banks to adopt blockchain solutions to avoid disintermediation. Financial firms are already piloting stablecoin-enabled services, including tokenized deposits and instant cross-border transfers. Meanwhile, debates continue over the role of central banks in issuing digital currencies, with some advocating for a hybrid model that leverages stablecoin benefits while maintaining centralized oversight [1].

JPMorgan’s analysis concludes that the $27 trillion milestone reflects a maturing market. Unlike earlier years, where stablecoins were largely used for speculative trading, 2024 saw growth driven by real-world applications such as supply chain financing and remittances. However, risks persist, including volatility in non-pegged models and reliance on opaque collateral. The report urges institutions to balance innovation with caution, as the lines between decentralized and traditional finance blur.

Source: [1] [JPMorgan: Stablecoins Processed $27T in 2024, Now Entering TradFi] [https://news.bitcoin.com/jpmorgan-stablecoins-processed-27t-in-2024-now-entering-tradfi/]