Stablecoins Are $500 Billion Risk to Bank Deposits, Report Finds

As stablecoins gain traction, US banks are at risk of their deposits being siphoned over to the digital asset realm, according to Standard Chartered Bank.

The increased use of the cryptocurrencies designed to track a mainstream asset, often the dollar, threatens to spur the exit of as much as $500 billion in deposits from lenders in industrialized nations by the end of 2028, an analysis from Geoff Kendrick, global head of digital assets research at Standard Chartered showed. He views landmark digital-asset legislation as the next likely catalyst for growth in crypto firms like Coinbase Global Inc., ...