The bank argues that for millions across developing nations, these digital tokens are fast becoming the preferred way to hold U.S. dollars – accessible, liquid, and outside the reach of local financial constraints.

According to analysts Geoffrey Kendrick and Madhur Jha, stablecoins now act as “digital dollar accounts” for users seeking security rather than yield. Backed by short-term U.S. Treasuries and redeemable on demand, they offer the kind of reliability that many emerging-market currencies lack. Even under the new U.S. GENIUS Act, which bans interest on compliant stablecoins, Standard Chartered expects adoption to surge, as “return of capital matters more than return on capital.”

The report projects the global stablecoin market could reach $2 trillion by 2028, with roughly two-thirds held as savings in emerging markets. Stablecoin deposits in these regions are forecast to grow from about $170 billion to over $1.2 trillion, implying a trillion-dollar outflow from local banks. Countries such as Egypt, Pakistan, Bangladesh, and Sri Lanka are identified as the most vulnerable to deposit flight, alongside Turkey, India, and Brazil, where demand for dollar stability is strongest.

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This shift poses challenges for emerging-market banks that depend on household deposits for funding. However, the analysts suggest opportunities also exist – such as acting as custodians for stablecoin reserves or integrating blockchain-based payments into their systems.

Governments are responding through CBDC pilots and upgrades to instant payment infrastructure, while major players like Tether and Stripe expand their footprint in developing economies. With the stablecoin sector already surpassing $300 billion, Standard Chartered concludes that a trillion-dollar migration into digital dollars is no longer a possibility – it’s the most likely scenario for the next wave of global finance.

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