JPMorgan: booming stablecoins to add $1.4T in dollar demand by 2027

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Artem Shendetskii

09.10.2025

JPMorgan: booming stablecoins to add $1.4T in dollar demand by 2027 — Stablecoins could strengthen

JPMorgan analysts have projected that the rapid growth of stablecoins could generate an additional $1.4 trillion in demand for U.S. dollars by 2027, reinforcing rather than weakening the dollar’s global position.

The report suggests that if overseas investors continue adopting stablecoins at scale, the digital assets could become one of the strongest drivers of dollar demand in the coming years, reports Cryptopolitan.

JPMorgan emphasized that nearly all major stablecoins — including Tether (USDT) and Circle’s USDC — are pegged 1:1 to the dollar, meaning that each new coin effectively represents a new unit of dollar exposure. The bank believes the trend underscores stablecoins’ growing role as a bridge between traditional finance and the emerging digital economy.

Stablecoin market projected to hit $2 trillion as emerging markets drive demand

JPMorgan’s high-end forecast envisions the stablecoin market reaching $2 trillion within two years, up from roughly $260 billion today. The surge in demand aligns with Standard Chartered’s separate prediction that stablecoin usage in emerging markets could reach $1.22 trillion by 2028, driven by inflationary pressures and distrust in local banking systems. According to the report, around two-thirds of all stablecoin holdings are already concentrated in developing economies, where citizens use U.S. dollar-pegged tokens as a hedge against volatile local currencies.

In nations like Venezuela, residents increasingly rely on USDT for everyday payments, illustrating how digital dollars are filling financial gaps left by traditional banking infrastructure. Analysts at both banks argue that stablecoins have become “digital lifeboats” for populations suffering from currency depreciation and government-imposed capital restrictions.

Regulators adjust policies to accommodate corporate stablecoin use

In a related development, the Bank of England (BoE) announced new exemptions to its proposed limits on corporate stablecoin holdings, signaling a more flexible regulatory approach. The central bank said it will issue waivers for crypto exchanges and settlement firms participating in its Digital Securities Sandbox, allowing them to hold larger stablecoin reserves. BoE Governor Andrew Bailey acknowledged that stablecoins could coexist with traditional finance, provided they meet transparency and risk management standards.

Earlier proposals had capped transactions at €20,000 ($26,832) for individuals and €10 million ($13.4 million) for businesses, but industry backlash prompted the bank to reconsider. The shift comes as the UK faces mounting pressure to stay competitive with the U.S. GENIUS Act, which provides a clear regulatory framework for dollar-backed stablecoins. Together, these developments highlight a growing consensus among major economies: stablecoins are here to stay — and their influence on global finance is only set to expand.

Recently we wrote that payments company Block Inc., founded by Jack Dorsey, has unveiled Square Bitcoin, a crypto-integrated wallet for small businesses using the Square point-of-sale (POS) system.

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