Standard Chartered Warns Stablecoins Could Strip $500B From U.S. Banks by 2028

TLDR

• Stablecoins threaten U.S. bank deposits as adoption accelerates nationwide
• Regional banks face rising margin risks from stablecoin-driven deposit flight
• New U.S. rules could fast-track stablecoin dominance in payments
• Tether’s USAT launch adds pressure on traditional deposit models
• Stablecoins may shift $500B away from banks by 2028, report warns

Stablecoin growth now signals a direct threat to core U.S. banking revenue, according to new projections from Standard Chartered. The report states that rising stablecoin adoption could drain deposits and weaken net interest margin across regional lenders. The outlook highlights a structural shift that may accelerate once new federal rules take effect.

Regional Banks Face Higher Net Interest Margin Exposure

Standard Chartered identifies net interest margin as the key pressure point because stablecoin demand pulls retail cash away from banks. It notes that regional banks depend more on interest income and therefore face sharper earnings losses. The analysis shows that this shift could widen as deposit flight progresses.

Regional lenders hold larger deposit bases that react faster to new payment options. Therefore, stablecoin usage may reduce their available funding and weaken loan capacity. The bank’s model indicates that these lenders remain the most exposed within the U.S. financial system.

The report also states that stablecoin activity will continue expanding across domestic markets. Regional banks may adjust their balance sheets, yet the structural imbalance remains clear. Standard Chartered stresses that this trend will persist despite near-term regulatory delays.

Market Structure Legislation Shapes the 2026 Turning Point

Lawmakers continue debating the Digital Asset Market Clarity Act, which sets stablecoin rules and could restrict yield features. This decision matters because yield access often influences deposit movement and stablecoin adoption. The bank projects that the bill will pass by late Q1 2026.

The legislation creates a new operating baseline for stablecoin issuers and banks. It also reshapes how digital dollars interact with traditional deposits. These changes could intensify the shift toward tokenized cash.

Standard Chartered estimates that stablecoin market value may reach $2 trillion by 2028. It forecasts that about $500 billion will leave developed market banks during this period. The report links this shift to structural preferences for faster settlement and broader access.

Tether’s USAT Entry Adds Pressure to Deposit Retention

Tether has introduced USAT, a stablecoin issued by Anchorage Digital Bank under federal oversight. This launch marks a move into the U.S. domestic market and supports compliance with the GENIUS Act. The token begins trading across several platforms and expands regulated stablecoin options.

Standard Chartered notes that reserve placement could influence deposit outcomes. If issuers place reserves in banks, deposit loss may slow. Leading issuers currently retain limited exposure to bank deposits.

The report concludes that stablecoin expansion reshapes domestic liquidity conditions. It also states that banks must adapt to preserve profitability. The shift marks a critical moment for U.S. financial stability

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