Banks Face $1 Trillion Deposit Loss to #Stablecoins


#StandardChartered analysts project that #stablecoins could pull $1 trillion in deposits from emerging market banks by 2028. The forecast assumes dollar-pegged tokens will provide households and companies with accessible USD exposure outside traditional banking systems.


Geoffrey Kendrick and Madhur Jha from Standard Chartered argue that depositors in emerging markets prioritize capital preservation over yield generation. Their analysis suggests adoption will accelerate despite the GENIUS Act prohibiting U.S.-compliant stablecoin issuers from paying direct interest to holders.


The bank estimates current #stablecoin savings in emerging markets at $173 billion, which could surge to $1.22 trillion within three years. This shift represents approximately 2% of aggregate deposits in high-vulnerability countries, including Egypt, Pakistan, Bangladesh, Sri Lanka, Turkey, India and Kenya.


Two-thirds of existing #stablecoin supply already functions as savings in emerging market accounts, according to the research. Standard Chartered projects the global stablecoin market will reach $2 trillion by end-2028, a figure the U.S. Treasury has referenced in policy discussions.


Venezuela demonstrates this banking-to-stablecoin transition, where annual inflation between 200% and 300% has driven citizens toward $USDT and $USDC. Merchants widely denominate prices in stablecoins, locally termed "Binance dollars," as the bolivar's value has collapsed amid hyperinflation.

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October 06, 2025 at 5:28 PM
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