US EditionUS Banks May Lose $500 Billion to Stablecoins by 2028, Standard Chartered Warns
Standard Chartered warns $500 billion could leave U.S. bank deposits for stablecoins by 2028, risking regional banks' net interest margins amid stalled crypto legislation.
- On Tuesday, Standard Chartered estimated U.S. dollar-backed stablecoins could pull about $500 billion from U.S. banks by end of 2028, warning this shift threatens domestic balance sheets.
- U.S. President Donald Trump last year signed the stablecoin bill, which bars issuers from paying interest but leaves a loophole allowing third parties to pay yields, critics say.
- Data show the estimate relies on lenders' net interest margin, with regional U.S. banks more exposed due to interest income reliance; Tether and Circle hold just 0.02% and 14.50% of reserves in bank deposits.
- Banking lobbyists warned that unless U.S. Congress closes the loophole, an exodus of deposits could threaten financial stability, while a Senate Banking Committee hearing on crypto legislation was postponed.
- Stablecoins' payments and trading uses could expand adoption, with the total deposits at risk depending on stablecoin issuers' reserves in the banking system, while Standard Chartered expects the bill to pass by late Q1 2026.
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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…
Standard Chartered Predicts Stablecoins Could Drain $500B From US Bank Deposits - Invest In Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Stablecoins could pose a significant challenge to the US banking system over the next several years, with as much as $500 billion in deposits potentially moving out of traditional banks by the end of 2028, according to a new analysis from Standard Chartered. Stablecoins Could Pressure Bank Earnings And Deposits The forecast, reported by Reuters an…
Standard Chartered Predicts Stablecoins Could Drain $500B From US Bank Deposits
Stablecoins could pose a significant challenge to the US banking system over the next several years, with as much as $500 billion in deposits potentially moving out of traditional banks by the end of 2028, according to a new analysis from Standard Chartered. Stablecoins Could Pressure Bank Earnings And Deposits The forecast, reported by Reuters and published Tuesday, suggests that regional US banks are likely to be the most vulnerable to deposit…
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 …
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