Deutsche Bank Warns AI Concentration Challenges US Dollar’s Safe-Haven Status

Deutsche Bank has warned that the US dollar is losing its reputation as a reliable safe-haven asset, as extreme concentration in the artificial intelligence (AI) sector and rising market volatility trigger a decoupling between the greenback and global equities.

George Saravelos, Global Head of FX Strategy at Deutsche Bank, noted on Monday, 16 February 2026, that the dollar no longer consistently rebounds during periods of risk aversion, a shift he attributes to the US stock market becoming qualitatively more risky.

Deutsche Bank warns AI risks in U.S. equities is undermining dollar’s safe haven status https://t.co/nrvviNxvVs
— CNBC (@CNBC) February 16, 2026

This warning follows a massive repricing in global equities that erased over a trillion dollars in value, driven by disillusionment over AI returns. Saravelos argued that if negative sentiment originates within US tech hubs, the dollar could decline alongside stocks, mirroring the 2002 dot-com bubble collapse rather than acting as a hedge.

A recent Deutsche Bank survey of 440 market participants found that 57% of investors view an AI valuation crash as the single largest risk to global markets in 2026. Analysts pointed out that US economic growth is currently carrying the weight of massive AI infrastructure spending, which could reach $500 billion this year alone.

Rising alternatives in a digital economy

While the dollar faces headwinds, Deutsche Bank researchers noted that the global financial architecture is shifting toward digital alternatives. The bank projects that the global stablecoin market capitalisation, which stood at $313 billion in January 2026, could exceed $2 trillion by 2028.

Meanwhile, Deutsche Bank, in collaboration with Memento Blockchain and Interop Labs, has introduced Digital Asset Management Access 2 (DAMA 2), a new institutional tokenization platform designed to facilitate the issuance of regulated funds on public blockchains.

The initiative aims to streamline fund launches by providing a Blockchain-as-a-Service model, eliminating the need for issuers to develop complex protocol teams.

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