JPMorgan analysts published a research note on May 21, 2026, arguing that tokenized money market funds, despite offering yield advantages over traditional stablecoins, are unlikely to grow beyond 15% of the total stablecoin market. Currently, tokenized MMFs represent approximately 5% of that market. The analysts cited structural adoption barriers including wallet infrastructure, regulatory friction, and counterparty familiarity as limiting factors.
For Armada's crypto repo desk, this is a market-sizing constraint on the tokenized T-Bill collateral category. If tokenized MMFs and by extension similar yield-bearing tokenized instruments remain a structurally small slice of the digital asset ecosystem, the liquidity and counterparty depth supporting them as repo collateral will be correspondingly limited. This should inform how aggressively Armada underwrites capacity for this collateral type and at what haircut levels, particularly given the no-rehypothecation policy that limits inventory recycling.