A few days ago, JPMorgan's estimate came out that the adoption of stablecoins could generate an additional demand for USD of ~1.4 trillion by 2027.
🧮 What did JPMorgan say and how do they justify it
JPMorgan analysts claim that since nearly 99% of stablecoins are pegged to the USD (e.g., USDT, USDC), if foreign investors, companies, or funds adopt stablecoins, it will create a growing need for real dollars to back them.
Currently, the stablecoin market is valued at approximately USD 260 billion, according to JPM, but it could scale towards the range of USD 2 trillion in an optimistic scenario.
In the bank's 'high' estimate, this growth implies that around USD 1.4 trillion additional demand for dollars will be induced to support those stablecoin issuances by 2027.
JPMorgan also notes that rather than driving a 'de-dollarization', the global adoption of stablecoins could reinforce the dollar's role as a global reserve currency.
🔍 Implications for USDT / USDC and the crypto market
✅ Potential favorable effects
1. More demand for USD reserves / related instruments
To back stablecoins, issuers must maintain liquid reserves (cash, Treasury bonds, equivalents). Greater scale of stablecoins implies more purchases of these USD-related assets, which could boost rates, market demand for debt, etc.
2. Greater institutional legitimacy
A forecast like this from a large bank like JPM may attract more institutional attention to the stablecoin space, pushing investments toward USDC, USDT, and related projects.
3. Strengthening of the 'dollar peg'
If a large part of the growth in crypto occurs in USDC / USDT, those assets become even more central in the crypto ecosystem as a store of value close to the USD.
4. Growth of stablecoins as financial infrastructure
Not just as a trading tool, but as payment mechanisms, global transfers, corporate treasury, liquidity between platforms, etc.
⚠️ Critiques, limits, and risks of the forecast
JPMorgan revised its own projections in July 2025, reducing optimistic estimates: they forecasted a stablecoin market of USD 500 billion by 2028, instead of several trillion scenarios.
The real adoption of stablecoins in payments, remittances, or everyday use remains limited: JPMorgan notes that only ~6% of stablecoin demand has come from traditional payments; most is still tied to trading and collateral in crypto.
Fragmented regulation and political risk: many countries may impose restrictions on stablecoins or require capital / reserve standards that limit their expansion.
Liquidity and backing risk: maintaining a 1:1 peg when scaling significantly is an operational challenge — backing errors or crises of confidence can break the system.
Overly optimistic scenarios assume that demand for cryptos / stablecoins becomes widespread rapidly and massively, which may not occur if users opt for other mechanisms (CBDC, traditional banks, existing methods).
