Catenaa, Tuesday, October 07, 2025- Standard Chartered Bank forecasts that up to $1 trillion could move from emerging market bank deposits into US dollar-backed stablecoins by late 2028.
It says this marks one of the largest potential capital shifts in modern financial history.
The projection, published by the bank’s global head of digital asset research Geoffrey Kendrick and economist Madhur Jha, highlights how stablecoins are increasingly functioning as “USD-based bank accounts” for individuals and businesses in emerging markets.
The report estimates that global stablecoin market value could reach $2 trillion by 2028, with most adoption coming from developing economies.
Emerging markets such as Egypt, Pakistan, Colombia, Bangladesh, and Sri Lanka were ranked among the most exposed to potential deposit outflows.
Countries including Turkey, India, Brazil, South Africa, and Kenya are also seen as likely to witness accelerating stablecoin use.
According to Standard Chartered, current stablecoin savings in emerging markets total roughly $173 billion and could rise to $1.22 trillion within three years.
Despite the US GENIUS Act barring compliant issuers from offering yield, analysts say adoption will continue as users prioritize safety and dollar access over returns.
The report warns that the shift could strain local banks, payment systems, and foreign exchange revenues but notes opportunities if lenders integrate stablecoin custody or cross-border settlement services. Many governments are countering with CBDC pilots and faster digital payment systems to stem potential outflows.
