JPMorgan Chase forecasts that the stablecoin supply could grow to $500 billion to $600 billion by 2028, significantly lower than the most optimistic projections of $2 trillion to $4 trillion. The bank attributes this to the demand for stablecoins being primarily a crypto market issue rather than a payment problem. The stablecoin market has expanded by approximately $100 billion this year, reaching around $308 billion, with Tether's USDT and Circle's USDC leading the growth. The demand is mainly driven by cryptocurrency trading and collateral needs in derivatives and DeFi. While current payment drivers are small, they may increase as more service providers explore stablecoin-based cross-border transfers. However, increased token velocity could offset the need for a larger stablecoin supply. Additionally, banks and payment networks are enhancing their positions through tokenized deposits and blockchain initiatives, while CBDCs could provide regulated alternatives to private stablecoins.