Standard Chartered warns up to $500 billion in US deposits could shift to stablecoins

Beincrypto reports Standard Chartered warned that as much as $500 billion — roughly one-third of US bank deposits — could migrate into stablecoins by the end of 2028, according to a report from the bank’s head of digital asset research, Geoff Kendrick.

Kendrick cited net interest margin (NIM) income as a percentage of total revenue to identify exposure, saying regional banks are the most at risk because deposits drive NIM, while diversified and investment banks are relatively insulated. He noted the concern extends beyond emerging markets, where he previously projected about $1 trillion in outflows, and added that "the tail is starting to wag the dog."

The report also highlights regulatory uncertainty: a delayed CLARITY Act draft would bar digital-asset service providers from paying interest on stablecoins, a move that prompted Coinbase to remove certain offerings. Kendrick expects the CLARITY Act to pass by the end of Q1 2026, but said the delay underscores how accelerating stablecoin adoption could pose structural challenges for banks and prompt meaningful deposit outflows, particularly at regional institutions.

Key Topics

Crypto, Standard Chartered, Geoff Kendrick, Stablecoins, Clarity Act, Regional Banks