Standard Chartered: $1 Trillion in Emerging Market Bank Deposits May Be Lost Due to Stablecoins

ChainCatcher news, The Block cites Standard Chartered's latest report, stating that up to $1 trillion may flow out of emerging market bank deposits due to the rise of dollar stablecoins and their widespread adoption in overseas markets.

The article points out that users in emerging markets tend to use dollar stablecoins as a hedge against local currency instability and capital controls, which will accelerate the shift of deposits towards dollar-denominated digital assets. Standard Chartered predicts that the total market capitalization of the entire stablecoin market is expected to reach $2 trillion within three years, a trend that poses challenges to the traditional banking system, especially for regional and community banks that heavily rely on consumer deposits to support their lending activities.