Standard Chartered warns stablecoins could drain $500 billion from U.S. bank deposits by 2028

Standard Chartered estimates that U.S. banks face potential deposit outflows of up to $500 billion to stablecoins by the end of 2028, representing a growing structural risk to the traditional banking system. This projection aligns with analysts' expectations of a $2 trillion stablecoin market cap by the decade's end. Geoffrey Kendrick, the bank's global head of digital assets research, noted that regulatory uncertainty, such as delays with the U.S. Digital Asset Market Clarity Act, could accelerate stablecoin adoption. The analysis suggests U.S. regional banks are most exposed due to their heavy reliance on deposit-funded lending, measured by net interest margin income as a percentage of total revenue. Furthermore, the report highlights that dominant stablecoin issuers hold only a small fraction of reserves in bank deposits, limiting offsets, and that two-thirds of current stablecoin demand originates in emerging markets.

(Source：The Block)