JPMorgan has reiterated its projection that the stablecoin market will not reach a trillion-dollar valuation by 2028. Instead, the financial giant estimates the market cap will be between $500 billion and $600 billion. The report highlights that stablecoin growth is primarily driven by crypto trading activities, including derivatives trading, DeFi lending, and cash management by crypto institutions. The report also notes that while the expansion of payment use cases for stablecoins is ongoing, it may not significantly increase the overall market size due to faster circulation reducing the required stock. Additionally, the emergence of tokenized bank deposits, blockchain payment solutions led by commercial banks, and central bank digital currencies (CBDCs) like the digital euro and digital yuan are providing alternative solutions for institutional and cross-border payments, potentially limiting stablecoins' role in long-term payment and settlement.