Standard Chartered Bank: Stablecoins Pose a Material Threat to Bank Deposits

BlockBeats News, January 27th, a Standard Chartered Bank analyst stated in a report that stablecoins pose a real risk to global and U.S. bank deposits. Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, pointed out in the report that the delay of the U.S. CLARITY Act serves as a reminder of the risk stablecoins pose to banks. Geoff Kendrick estimated that U.S. bank deposits will decrease as the market cap of stablecoins grows, with the reduction amount representing a proportion of the stablecoin market cap. The most significant impact is on U.S. regional banks, while investment banks are least affected. The report indicates that only 0.02% and 14.5% of Tether's and Circle's reserves, respectively, are bank deposits, showing a very low reserve ratio.

By the end of 2028, based on a forecasted $2 trillion market cap for stablecoins, an estimated $500 billion in deposits could flow out of developed market banking systems, while the outflow from emerging market banks could be as high as $1 trillion.