Finance
Stablecoins may drum up $1.4 trillion of extra dollar demand by 2027, JPM says
Published by Global Banking and Finance Review
Posted on October 8, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 8, 2025
2 min readLast updated: January 21, 2026
JPMorgan forecasts stablecoins could boost U.S. dollar demand by $1.4 trillion by 2027, emphasizing their growing role in global finance.
LONDON (Reuters) -The adoption of stablecoins could generate an additional $1.4 trillion in demand for U.S. dollars by 2027, if enough overseas investors want to own these digital assets, analysts at JPMorgan said in a note on Tuesday.
WHY IT'S IMPORTANT
The potential increase in dollar demand underlines the importance of the burgeoning stablecoin market in traditional finance. JPMorgan believes that rather than accelerating de-dollarisation, the growth in stablecoin adoption has the potential to reinforce the dollar’s role in global finance.
BY THE NUMBERS
The stablecoin market, which JPM said is currently worth $260 billion, could grow to as much as $2 trillion in their high-end scenario.
Approximately 99% of stablecoins, such as Tether, are pegged 1:1 to the dollar, meaning if foreign households or corporations convert holdings of their local currency into stablecoins, it would represent new U.S. dollar demand.
CONTEXT
Stablecoins are digital tokens that have a stable value against a regular currency, mainly the dollar, and are backed by reserves like the currency itself or other assets, such as Treasuries and T-bills.
Euro zone finance ministers are due to discuss on Thursday how they can support the development of euro-denominated stablecoins, a euro zone official said.
KEY QUOTES
"Whether such a high-end scenario growth trajectory will actually play out remains to be seen, but if it does, stablecoin-related dollar inflows could become cumulatively significant," JPM said.
"Given that ~99% of the total stablecoin supply is pegged 1:1 to the dollar, stablecoin market growth necessarily implies some demand for the dollar."
(Reporting by Samuel Indyk; Editing by Amanda Cooper, Aidan Lewis)
A stablecoin is a type of cryptocurrency that is designed to maintain a stable value by pegging it to a reserve asset, such as the U.S. dollar, to reduce volatility.
Dollar demand refers to the need for U.S. dollars in the global market, often influenced by international investments, trade, and the adoption of financial instruments like stablecoins.
De-dollarisation is the process of reducing reliance on the U.S. dollar in international trade and finance, often by using alternative currencies or financial systems.
Digital assets are any assets that exist in a digital form, including cryptocurrencies, tokens, and other forms of digital currency that can be traded or used for transactions.
The stablecoin market encompasses all cryptocurrencies that are pegged to stable assets, such as fiat currencies, and aims to provide a less volatile alternative for transactions and investments.
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