JPMorgan: Stablecoins are driving trillions of dollars in buying power, not a de-dollarization force.

JPMorgan ( latest report indicates that with the rapid global adoption of stablecoins, it will drive a buying wave amounting to trillions of dollars in the coming years. The analysis team emphasizes that this trend will not accelerate “de-dollarization”; rather, it will further strengthen the U.S. dollar's dominant position in the global financial system.

JPMorgan is optimistic about stablecoins, which will drive up the demand for the US dollar.

J.P. Morgan analysts Kunj Padh, Meera Chandan, and Octavia Popescu pointed out in a research report on Tuesday that the global adoption rate of stablecoins could become an important force driving demand for the US dollar in the coming years. The three analysts stated:

“Rather than saying that stablecoins will accelerate de-dollarization, it is more likely that their growth will solidify the role of the US dollar in the global financial system.”

The market has a huge gap in the forecast of stablecoin scale.

JPMorgan has differing views internally on the scale of the stablecoin market, among which:

Emerging Market Equity Strategy Team: Expects that the stablecoin market size may reach 2 trillion dollars.

U.S. Interest Rate Strategy Team: Relatively conservative, expecting a final scale of about 500 billion dollars.

If we look at the highest projected scale, JPMorgan's foreign exchange strategists believe that by 2027, the expansion of the stablecoin market could increase the global demand for USD by about $1.4 trillion. Although this figure is quite astonishing, it is relatively small compared to the daily trading volume of $8.6 trillion reported by the Bank for International Settlements )BIS(.

The source of funds and market sentiment affect the key buying pressure for the US dollar.

JPMorgan pointed out that whether the growth of the stablecoin market can truly boost the demand for the dollar depends on where the funds are coming from. If the funds are only from within the United States, moving from bank deposits or money market funds to stablecoins, the overall demand for the dollar has actually not changed.

However, if overseas enterprises or households buy dollar assets to issue or hold stablecoins, a truly new demand for dollars will emerge. JPMorgan stated that despite the continuous growth of stablecoin scale, no significant impact on the global foreign exchange capital flow has been observed so far.

The strong duality of the US dollar and BTC serves as the best support for the growth of the stablecoin market.

J.P. Morgan pointed out that if both the US dollar and BTC can maintain strength in the future, it indicates that there is still room for further growth in the stablecoin market. It also mentioned that the current dependency of stablecoins on the US dollar is actually higher than that of global foreign exchange reserves or international trade settlement systems.

Finally, as a supplement, if the positive correlation between the US dollar and BTC continues in the future, meaning both strengthen simultaneously, it will be the best boost for the rapid growth of the stablecoin market.

)Standard Chartered: Over $1 trillion will flow into stablecoins from emerging market banks before 2028 (

This article Morgan Stanley: Stablecoins are driving trillions of dollars in buying power, not a de-dollarization force first appeared in Chain News ABMedia.