šø Stablecoins threaten banks with up to $500,000,000,000 in deposit outflows.
ā¤ Standard Chartered believes that as stablecoins grow, banks in developed economies could lose up to $500 billion in deposits by 2028.
ā¤ In the #United States, deposit volumes could shrink by an amount equal to one-third of the total stablecoin market capitalization. This figure already exceeds $300 billion, with the market growing at around 40% per year.
ā¤ A key catalyst is #CLARITY ā the crypto market structure bill currently moving through Congress. Its adoption could sharply accelerate capital flows from banks into crypto.
ā¤ The main #concern for banks is yield. Coinbase already offers 3.5% APY on USDC, prompting banks to actively lobby for restrictions on such āquasi-deposits.ā
ā¤ #Tether and Circle barely return funds to banks ā only 0.02% and 14.5% of their reserves, respectively, are held as bank deposits. Capital flows out and does not come back.
