JPMorgan Predicts Stablecoins Could Drive $1.4 Trillion in Dollar Demand by 2027

JPMorgan analysts project that stablecoins may catalyze a seismic shift in global dollar demand, estimating up to $1.4 trillion in new inflows by 2027. The current $260 billion stablecoin market could balloon to nearly $2 trillion under bullish adoption scenarios, further anchoring the U.S. dollar's dominance in cross-border finance.

Nearly all stablecoins maintain 1:1 dollar pegs, effectively transforming each minted token into a synthetic dollar instrument. This mechanism creates a self-reinforcing cycle: as offshore investors acquire stablecoins, they indirectly bolster demand for U.S. Treasury holdings and banking system liquidity.

The report underscores how crypto-native dollar proxies are becoming transmission channels for American monetary policy. Unlike traditional forex markets, stablecoin growth generates persistent structural demand for dollars—a trend that could reshape global reserve currency dynamics in the coming decade.