Standard Chartered Predicts $1 Trillion Shift to Stablecoins in Emerging Markets
Standard Chartered expects stablecoin users in emerging markets to move up to $1 trillion from banks to US dollar–pegged tokens by 2028. The bank made this prediction in a report released on Monday.
The report says many people in these regions do not have bank accounts. They are using stablecoins as a substitute for US dollar accounts. This trend is growing fast.
Impact of the US GENIUS Act on Stablecoin Adoption
The US GENIUS Act, recently passed, stops US-compliant stablecoin issuers from paying direct yields. This aims to reduce deposit flight from banks. However, Standard Chartered says stablecoins will still be adopted even without yield.
The bank forecasts stablecoin savings in emerging markets could grow from $173 billion now to $1.22 trillion by 2028. This means over $1 trillion could flow out of traditional banks. Growth will come from more retail users, not just large holders.
Countries Most Affected and Global Stablecoin Trends
- Countries at risk of bank deposit outflows include Egypt, Pakistan, Colombia, Bangladesh, and Sri Lanka.
- India, China, Brazil, and South Africa may see faster stablecoin adoption.
Standard Chartered previously predicted the stablecoin market could reach $2 trillion by 2028 as crypto use grows worldwide.
Meanwhile, nine European banks, including ING, UniCredit, CaixaBank, and Danske Bank, plan to launch a euro-denominated stablecoin. This will offer a European alternative to US dollar-backed tokens. Read more here.
