Stablecoin Boom Fuels Unexpected Dollar Strength in 2025
The de-dollarization narrative has hit a surprising roadblock as global demand for the US dollar surges in 2025. Contrary to expectations, the crypto market—particularly the stablecoin sector—is reinforcing dollar dominance rather than undermining it. Stablecoins now represent a $256 billion market, with issuers amassing substantial US Treasury holdings to back their tokens.
Bank of America analysts argue the world is experiencing rapid dollarization through nonbank financial intermediaries. Stablecoins have created new pathways for dollar demand, reshaping what many predicted WOULD be a crypto-driven decline in greenback supremacy. Senator Bill Hagerty's recent comments align with this unexpected trend, though his full statement was cut off in transmission.
