Standard Chartered warns that stablecoins could withdraw $500 billion in U.S. bank deposits by 2028

According to The Block, Standard Chartered Bank released a report stating that the accelerated adoption of stablecoins could withdraw up to $500 billion in deposits from the U.S. banking system by 2028, posing the greatest threat to U.S. regional banks that rely on deposit interest margins.

The bank expects that by then, the market value of stablecoins will reach $2 trillion, with one-third coming from developed markets. Regulatory uncertainty and delays in legislation are also seen as amplifying risk factors.