JPMorgan predicts: The stablecoin boom will drive an additional demand of $1.4 trillion, with a total market capitalization expected to reach $2 trillion.

JPMorgan analysts have published a report predicting that as the adoption wave of global stablecoins continues to rise, this market has the potential to create at least $1.4 trillion in additional demand for the USD by 2027. This prediction is based on the current situation where over 90% of the assets in the stablecoin market are pegged to the USD, with Tether's USDT holding nearly 60% of the dominant position. JPMorgan believes that the rise of stablecoins will not replace the USD's dominance; rather, it will further consolidate the USD's core role in the international financial system by attracting overseas investors to exchange local currencies for USD-pegged Tokens for trading and investment.

The Symbiotic Relationship Between Stablecoins and the US Dollar: 99% of Stablecoin Supply is Pegged to the US Dollar

JPMorgan's analysis has completely overturned some market concerns that stablecoins could lead to "de-dollarization," suggesting that their dominance actually reinforces the position of the USD.

· Dominance of the US Dollar: According to CMC data, in the stablecoin market with a total market capitalization of 304 billion USD, dollar-pegged Tokens account for over 300 billion USD, accounting for more than 90%. Tether (USDT) holds nearly 60% market share, taking the lead.

· Mechanism of Surging Demand: JPMorgan pointed out that "given that (approximately) 99% of the total supply of stablecoins is pegged to the US dollar at a 1:1 ratio, the growth of the stablecoin market inevitably means some demand for the US dollar." This enormous increase in demand will come from overseas investors who need to exchange their local currency into stablecoins backed by US dollars or dollar-equivalent assets (such as US Treasuries and bonds) for trading and investment.

· Long-term impact: JPMorgan stated, "Whether this high-growth scenario will truly occur remains to be seen, but if it does, the dollar inflows related to stablecoins will accumulate to form a capital force with systemic impact." The report emphasizes that the global proliferation of stablecoins will not accelerate the process of "de-dollarization"; rather, it may further solidify the dollar's central position in the international financial system.

The market size is expected to exceed 2 trillion: Policies and innovations drive explosive rise

The stablecoin market has experienced astounding rise over the past few years, with the clarification of regulations and the expansion of global financial adoption being the main driving forces behind its explosive growth.

· Historic Breakthrough: In just five years, the market value of the stablecoin industry has risen from a negligible 4 billion USD to the current 304 billion USD. Just a week ago, the market cap first broke 300 billion USD, gaining 100 billion USD in funding from investors in just 2025.

· Growth Potential: JPMorgan estimates that the stablecoin market could rise to 2 trillion USD in the coming years, which means a leap from its current value of 1.7 trillion USD. Although this figure is optimistic, institutions like Citibank have also predicted that by 2030, the scale of stablecoins could reach 1.6 trillion to 3.7 trillion USD.

· Global regulation accelerates mainstream adoption: The emergence of a global regulatory framework promoting the use of stablecoins has accelerated their mainstream adoption. In the United States, the passage of the GENIUS Act has laid the foundation for the growth of dollar-pegged Tokens. In Europe, banks are actively exploring the launch of euro-pegged Tokens, intending to challenge the dominance of the dollar in the stablecoin market. Meanwhile, in Hong Kong, the introduction of the stablecoin regulations has sparked a wave of companies applying to issue local currency-pegged Tokens.

Conclusion

J.P. Morgan's forecast paints a grand blueprint for the future of stablecoins, suggesting that stablecoins are not only the "connectors" of the cryptocurrency market but are also likely to become a new type of infrastructure for the circulation of the dollar in the global digital economy. This forecast indicates that the enormous growth potential of stablecoins primarily stems from overseas demand for the safety and liquidity of the dollar. Although there are differing estimates regarding the speed of growth in the market, the maturation of the global regulatory environment and active participation from institutions are collectively driving the stablecoin market towards a scale of trillions of dollars. The key in the future lies in whether the new demand from overseas markets can continue to outpace the simple transfer of funds from the U.S., which will directly determine whether the additional demand for 1.4 trillion dollars can become a reality.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions with caution.