Stablecoins could draw $1 trillion in deposits away from traditional banks within the next three years
That’s the forecast from Standard Chartered’s latest report, which estimates the value of stablecoins used for savings in emerging markets could surge from $173 billion today to $1.22 trillion by 2028.
The bank warned that countries with high inflation, weak foreign reserves, and large remittance inflows, such as Egypt, Pakistan, Bangladesh, Sri Lanka, India, Turkey, and Brazil, could face significant “deposit outflows” to stablecoins.
With 24/7 transaction capability and a peg to the U.S. dollar, stablecoins are increasingly seen as a safer and more flexible store of value than domestic bank deposits, especially after the U.S. GENIUS Act mandated that all stablecoins must be fully backed by USD.
Standard Chartered noted that although the law prohibits stablecoin issuers from paying interest, users still prefer them because preserving value, not earning yield, is their top priority.
