Tokenized Treasuries Like Blackrock's BUIDL Will Challenge Stablecoins But Won't Fully Replace Them: JPMorgan
Summary
Stablecoins are unlikely to be fully replaced by tokenized treasuries, according to JPMorgan. Tokenized treasuries could replace some idle cash within stablecoins but face regulatory disadvantages as securities, limiting their use as collateral. The amount of idle cash in stablecoins is difficult to quantify and likely not the majority of the market. Stablecoins, pegged to currencies like the U.S. dollar, currently have a liquidity advantage with a market of nearly $180 billion, offering low transaction fees. Tokenized treasuries have lower liquidity, which may improve as they gain traction.
