Standard Chartered’s analysis warns that stablecoins could siphon roughly $500 billion in deposits from U.S. banks by 2028, with regional lenders particularly vulnerable to outflows. The risk stems from how stablecoins operate outside traditional banking deposit systems, especially as federal stablecoin regulation advances under newly introduced legislation. Banks regard this potential shift as a structural threat to their core deposit base, while crypto firms argue that limiting stablecoin incentives could hinder competition.

US Banks May Lose $500 Billion to Stablecoins By 2028, Standard Chartered Warns