According to JPMorgan analysts, the market for tokenized Treasury bonds is growing, and tokenized U.S. Treasury bonds are gaining favor as an income alternative to stablecoins and could challenge the dominance of stablecoins. However, analysts point out that regulatory restrictions and liquidity issues suggest that tokenized Treasury bonds may only partially replace stablecoins. Analysts say that large stablecoin issuers such as Tether (USDT) and Circle (USDC) do not share reserve earnings with users, a practice that will not only reduce their income, but also classify stablecoins as securities. Analysts point out that this classification will subject them to strict regulatory oversight, which could limit their use as collateral assets in the cryptocurrency market.