The adoption of stablecoins could boost demand for US dollars by up to US$1.4 trillion by 2027, if enough overseas investors choose to hold these digital assets, according to JPMorgan analysts.

JP Morgan said that if overseas investors increase their holdings of stablecoins, the market could expand from its current US$260 billion to as much as US$2 trillion in a high-end scenario.

About 99% of stablecoins, such as Tether, are pegged to the dollar, so converting local currency holdings into stablecoins would create new demand for US dollars.

JP Morgan noted that stablecoin growth may reinforce the dollar’s role in global finance rather than speed up moves away from it.

Stablecoins are digital assets designed to maintain a stable value against regular currencies and are backed by reserves like cash or Treasuries.

🔗 Source: Reuters

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