JPMorgan predicts significant growth in the stablecoin market, projecting a valuation of approximately $500 billion by 2028. While substantial, this forecast reflects a more cautious outlook compared to some industry predictions that estimate a $1-2 trillion market size. Limited Use Cases Restrain Growth Currently, the primary driver of stablecoin demand is cryptocurrency exchange trading, accounting for roughly 88% of the total. Payments only constitute about 6%, highlighting a limited integration into the broader financial system. This reliance on the crypto ecosystem poses a constraint on rapid adoption. Factors Driving Expansion Despite the cautious outlook, several factors could contribute to stablecoin expansion. Increased regulatory clarity, improved infrastructure, and wider acceptance by merchants could fuel greater adoption in payments and other real-world applications. However, JPMorgan emphasizes that widespread integration into the traditional financial system remains a challenge given the current market structure. The future of stablecoins hinges on diversifying use cases beyond crypto trading. ```