Catenaa, Tuesday, January 27, 2026- US banks could see up to $500 billion in deposit outflows to stablecoins by the end of 2028, Reuters and other news agencies reported citing report from the Standard Chartered.
However, the report is not publicly available.
The report warns of mounting pressure on the traditional banking system.
The estimate equals about one-third of the $2 trillion stablecoin market size the bank expects by the end of the decade.
It also represents roughly half of the $1 trillion in emerging market deposits that the bank has previously projected could shift into US dollar-pegged stablecoins over the same period.
The report said the risk has grown as payments and other core banking services increasingly move to blockchain-based alternatives.
Analysts also cited delays around the US Digital Asset Market Clarity Act, which has slowed the establishment of a formal regulatory framework.
Regulatory uncertainty in Washington has intensified debate between large banks and crypto firms. The analysis noted growing concern among bank executives that stablecoins could attract trillions of dollars in deposits if issuers are allowed to offer interest, accelerating the migration away from traditional accounts.
Standard Chartered said US regional banks face the highest exposure due to their reliance on deposit-funded lending.
Diversified banks were found to have moderate exposure, while investment banks and brokerages appeared less vulnerable because deposits account for a smaller share of their revenue.
Structural factors may deepen the impact. Major stablecoin issuers currently hold only a limited portion of reserves in bank deposits, reducing the likelihood that funds cycle back into the banking system.
The bank also estimated that about two-thirds of stablecoin demand comes from emerging markets.
US dollar stablecoins currently total about $300 billion in supply. If projections hold, deposit migration alone could push the market closer to $1 trillion by 2028.
