JPMorgan stated that while tokenized treasuries might take over some of the idle cash in stablecoins, a complete replacement seems unlikely due to regulatory disadvantages.
Stablecoins maintain a significant liquidity advantage over tokenized treasuries, facilitating seamless trading and supporting a massive market of nearly $180 billion across various platforms.
Tokenized treasuries, classified as securities, face more restrictions which limits their utility as collateral, hindering their ability to fully replace stablecoins.
The idle cash within stablecoins is difficult to quantify but is not deemed sufficient to represent the majority of the stablecoin market, according to JPMorgan.
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