PANews reported on May 22nd, citing The Block, that JPMorgan analysts stated that tokenized money market funds are expected to continue growing, but unless regulatory rules change, their size is unlikely to exceed 10% to 15% of the stablecoin market. Currently, tokenized money market funds only account for about 5% of the stablecoin market. Analysts point out that stablecoins have become the preferred cash tool in the crypto ecosystem, widely used for collateral management, trading, settlement, cross-border payments, and daily liquidity management. In contrast, tokenized money market funds face structural regulatory disadvantages: they are typically classified as securities, subject to registration, disclosure, reporting obligations, and transfer restrictions, making it difficult for them to circulate freely within the crypto ecosystem.

Therefore, the primary users of these funds are currently limited to two categories: crypto-native investors seeking returns on idle cash, and institutional investors who want the advantages of tokenized operations, such as faster settlement and programmability, while still remaining within the framework of traditional investor protection. Analysts believe that the SEC's simplification of the on-chain money market fund issuance process this year, and its attempt to allow institutional investors to use on-chain money market funds as collateral for over-the-counter transactions, are only marginal improvements and insufficient to change the overall landscape.