What happened?
Standard Chartered warned that more than $1 trillion could flow out of emerging-market banks into dollar-pegged stablecoins by 2028 as adoption accelerates. The bank’s report says stablecoin holdings in emerging markets could jump from roughly $173 billion today to about $1.22 trillion within three years. It describes stablecoins as acting like USD-based bank accounts for people in high-inflation or dollar-scarce countries, pulling deposits away from traditional banks.
Who does this affect?
The biggest impact would be on depositors and commercial banks in emerging markets — especially countries like Egypt, Pakistan, Colombia, Bangladesh and Sri Lanka, and also Turkey, India, China, Brazil, South Africa and Kenya. Consumers, businesses, remittance recipients and merchants using USDT/USDC for savings and payments are directly involved. Regulators, global banks and fintech firms also face consequences as this trend changes how deposits, payments and lending work.
Why does this matter?
If roughly $1 trillion shifts out of bank deposits, banks in affected markets could have less funding to make loans, slowing credit growth and economic activity. Globally, banks may be forced to raise deposit rates, change business models or accept slimmer margins while stablecoin issuers and crypto platforms gain market share. With the stablecoin market possibly reaching about $2 trillion by 2028, investors, regulators and financial institutions will likely face new risks, opportunities and policy responses.