JPMorgan predicts stablecoin market could hit $2T and fuel dollar demand

JPMorgan reported that stablecoin growth could generate an additional $1.4 trillion in demand for U.S. dollars by 2027. The bank argued that an increase in interest from enough overseas investors to own stablecoins could drive the digital assets in two years.

JPMorgan stated that the potential increase in demand for the greenback highlights the importance of stablecoins in traditional finance. JPMorgan believes that the growth of stablecoin adoption has the potential to reinforce the dollar’s role in global finance, rather than the U.S. government accelerating de-dollarization.

JPMorgan expects stablecoin market to reach $2T

Can stablecoins draw $1T from emerging market banks by 2027???

Stablecoin adoption in developing economies expected to surge from ~$170B to $1.2T by 2028.

Why?

People want out of their failing home country fiat currency into the strong USD. While new crypto regulations have… pic.twitter.com/sc0jDP82lD

— Andy (@ayyyeandy) October 7, 2025

JPMorgan predicted that the stablecoin market could grow to as much as $2 trillion in their high-end scenario. At the time of publication, the stablecoin market is valued at approximately $260 billion.

Nearly all stablecoins are pegged 1:1 to the dollar, which means that any conversions of any foreign currency into stablecoins, such as Tether, would represent new U.S. dollar demand. The financial institution stated that if such a growth trajectory eventually plays out, stablecoin-related dollar inflows could become cumulatively significant.

Standard Chartered forecasted that the amount of funds held in stablecoins in emerging markets could surge to $1.22 trillion by 2028. The financial institution’s research team argued that people in developing countries will turn to stablecoins as a safer and more convenient way to save money as the cryptocurrency industry grows. The bank revealed that around two-thirds of the current global stablecoin supply is already held in emerging markets.

Standard Chartered’s research team found that people in emerging markets are increasingly turning to stablecoins to protect themselves from inflation. They argued that local currencies lose value fast and U.S. dollar-pegged digital assets offer a safer store of value. 

Cryptopolitan previously reported that the bank’s research team added that stablecoins become reliable when local banks are unstable or under government pressure. The bank pointed to Venezuela, where the country’s inflation is out of control, and many Venezuelans have resorted to using USDT for daily payments.

BoE introduces stablecoin exemptions for businesses

The Bank of England introduced exemptions to its proposed limits on corporate stablecoin holdings on Tuesday. Bloomberg reported that the initiative signals a shift in approach as Britain faces mounting pressure to remain competitive with U.S. crypto regulations.

According to the report, Britain’s central bank plans to issue waivers for certain businesses, including crypto exchanges that need to hold large amounts of stablecoins. The BoE will also issue waivers for businesses that allow the use of stablecoins as settlement assets within its experimental Digital Securities Sandbox.

The BoE Governor, Andrew John Bailey, recently mentioned that stablecoins could coexist with traditional finance. The Financial Times reported last week that Bailey said it would be wrong to oppose stablecoins as a matter of principle.

“Indeed, I do not hold that view, recognising their potential in driving innovation in payment systems both at home and across borders. Practice matters, however, and these stablecoins must satisfy the conditions that enable public trust.”

-Andrew John Bailey, Governor of the Bank of England.

The Bank of England had previously proposed capping stablecoin transactions at up to €20,000 ($26,832) for individuals and €10 million ($13.4 million) for businesses. The report revealed that the stablecoin caps are expected to be detailed in a consultation later this year.

There have been widespread concerns within the crypto industry regarding the proposed stablecoin holding limits, which may have prompted consideration of potential exemptions. There was also criticism that the UK risks falling behind markets like the U.S., which has recently passed the GENIUS Act that establishes rules for dollar-backed stablecoins.

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