JPMorgan: Tokenized government bonds will challenge stablecoins but will not completely replace them

ChainCatcher news, JPMorgan analysts indicate that the tokenized government bond market is growing, with tokenized U.S. Treasuries being favored as a yield alternative to stablecoins and potentially challenging the dominance of stablecoins.

However, analysts point out that regulatory constraints and liquidity issues suggest that tokenized government bonds may only partially replace stablecoins. Analysts state that large stablecoin issuers like Tether (USDT) and Circle (USDC) do not share reserve yields with users, a practice that not only reduces their income but also classifies stablecoins as securities. Analysts note that this classification would subject them to strict regulatory oversight, which could limit their use as collateral in the cryptocurrency market.