Dollar Stablecoins Amplify Existing Network Effects

The development of digital currencies has led to a shift in focus from technological advancements to network effects. The creation of dollar stablecoins, such as USDT and USDC, has amplified the existing credit and usage network of the US dollar.

According to the Bank for International Settlements (BIS), about 98% of global stablecoin market capitalization is denominated in US dollars. This indicates that the blockchain era has not led to de-dollarization but rather created a new channel for the US dollar to enter the internet economy.

The BIS estimates that the total market capitalization of global stablecoins as of April 2026 is approximately $315 billion. The dominance of the US dollar in global allocated official foreign exchange reserves and foreign exchange trading further supports this trend.

Digital technology has reduced operational friction within the US dollar system, allowing for 24/7 transactions, automated settlement, and integration with smart contracts. This is evident in experiments conducted by J.P. Morgan, Chainlink, and Ondo, as well as DTCC's Great Collateral Experiment.