JPMorgan Questions Institutional Stablecoin Appetite, Tether CEO Responds

At the Barclays Global Financial Services Conference in New York, JPMorgan co‑president Doug Petno suggested that institutions have not yet shown strong demand for stablecoins. He cited interoperability gaps, regulatory uncertainty, and know‑your‑customer requirements as barriers.

JPMorgan’s View on Institutional Demand

Petno, who co‑leads JPMorgan Chase’s Commercial and Investment Bank, said the bank could launch a stablecoin quickly but sees little pull from institutional clients outside of crypto‑trading activities. He framed the current market as “nascent” and noted that the bank’s own blockchain payments arm, Kinexys, focuses on tokenized deposit rails rather than a public stablecoin.

Tether’s Counterpoint

Within hours, Tether CEO Paolo Ardoino responded on X with a humorous remark that Tether sees “little demand from the North Pole for imported ice,” highlighting the company’s large stablecoin volume. USDT’s market value is around $183 billion, and total stablecoin supply sits near $311 billion.

Market Forecasts and Research

J.P. Morgan Global Research projects the stablecoin market could reach $500 billion to $750 billion, a range lower than some forecasts that predict $2 trillion. Analysts note that broader adoption could affect bank borrowing costs.

Regulatory and Audit Developments

Tether has been working to meet institutional scrutiny, receiving its first clean audit from KPMG in August 2026. The company’s reserve cushion behind USDT has reportedly thinned since that audit.