JP Morgan's Digital Cash Digest; Cryptocurrency Legislation Stalled in Q1 2026 1. Recent client conversations continue to focus on the growing influence of stablecoins in money markets and, more broadly, how digital cash will shape the future of payments and tokenization. This topic has been a key topic at industry forums like the World Economic Forum (WEF) in Davos, as well as in recent earnings calls. 2. Digital assets are no longer a peripheral topic. Market participants across the spectrum, from regulators and banks to stablecoin issuers and payment professionals, are actively examining how these innovations will integrate into the global financial system. 3. With this in mind, we are launching the "Digital Cash Digest" to provide an up-to-date overview of the rapidly evolving digital cash landscape and its implications for money markets. This report focuses on recent market developments, product innovations, regulatory changes, key trends, and a data-driven perspective on market dynamics, size, and other relevant indicators. 4. Recent trends include the delay in Congress's passage of the Cryptocurrency Market Structure Bill, the Financial Accounting Standards Board's (FASB) work to define stablecoins from a balance sheet perspective, major credit rating agencies' stablecoin ratings, and the emergence of new players in the digital cash space. 5. The stablecoin market has grown by $1.1 billion since the beginning of the year and has remained around $300 billion for the past several months. Tether's USDt is the most popular stablecoin, accounting for 63% of the total market capitalization with $189 billion. USDC follows, accounting for 25% of the total market capitalization.