US EditionUS Banks May Lose $500 Billion to Stablecoins by 2028, Standard Chartered Warns
Standard Chartered projects stablecoin market cap to reach $2 trillion by 2028, risking $500 billion in deposits from U.S. banks and threatening their net interest margins.
- On Tuesday, Standard Chartered estimated U.S. dollar-backed stablecoins could pull around $500 billion in deposits from U.S. banks by the end of 2028.
- Market-Structure legislation is the catalyst for change and is stalled in the Senate, with draft bill provisions banning issuer interest but allowing third-party yield.
- Using NIM as its metric, the analysis shows Standard Chartered found regional U.S. banks are more exposed to deposit loss than diversified giants, while Tether and Circle hold just 0.02% and 14.5% of reserves in bank deposits respectively.
- Banking lobbyists warned that unless Congress closes the loophole banks could face an exodus of deposits that potentially threatens financial stability, while the Senate hearing was postponed amid disagreements.
- Standard Chartered expects the bill to pass by late Q1 2026, with the scale of deposit flight depending on reserve placements in U.S. banks, which could reduce outflows.
12 Articles
12 Articles
US banks may lose $500 billion to stablecoins by 2028, Standard Chartered warns
By Hannah Lang Jan 27 (Reuters) – U.S. dollar-backed crypto tokens known as stablecoins could pull around $500 billion in deposits out of U.S. banks by the end of 2028, Standard Chartered estimated on Tuesday – new analysis that could intensify a fight between banks and crypto companies over legislation to set rules for the digital asset sector. Regional U.S. banks would be most exposed to a loss in deposits due to stablecoins, said Geoff Kendr…
Stablecoins: A Rising Threat to US Banks as $500 Billion Departs
TLDR Standard Chartered predicts that $500 billion in bank deposits will move to stablecoins by 2028. The shift in deposits poses a growing risk to traditional banks’ earnings and net interest margins. Regional banks are more vulnerable to the potential deposit outflow caused by stablecoin adoption. Lawmakers are debating the Digital Asset Market Clarity Act, which could regulate stablecoins and their ability to offer yield. Stablecoin issuers …
Standard Chartered Says Stablecoins Could Threaten Regional Banks
The rise of stablecoins could pose a grave threat to America’s regional banks. That’s according to a new analysis from investment bank Standard Chartered, cited in a report Tuesday (Jan. 27) from CoinDesk. The chief risk for banks is the deterioration of net margin interest (NIM), as it is driven by the deposits being pulled into digital assets, said Geoff Kendrick, head of digital assets research at Standard Chartered. The report not…
Stablecoin disruption risks hit US regional banks by 2028
The post Stablecoin disruption risks hit US regional banks by 2028 appeared on BitcoinEthereumNews.com. Concerns are rising inside traditional finance that stablecoin disruption could accelerate deposit flight from U.S. banks and reshape the core revenue model of regional lenders. Standard Chartered flags a looming threat for U.S. banks Standard Chartered has warned that U.S. regional banks are the most exposed to the growth of stablecoins becau…
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