TechFlow news, January 27: According to a Cointelegraph report, Standard Chartered’s latest research shows that stablecoins pose a material risk to global and U.S. bank deposits. Geoff Kendrick, Head of Global Digital Assets Research at Standard Chartered, stated in a report released on Tuesday that the delay in passing the U.S. CLARITY Act serves as “a reminder that stablecoins pose risks to banks.”
The report estimates that U.S. bank deposits could shrink by an amount equivalent to one-third of the market value of stablecoins. The current market value of USD-pegged stablecoins stands at approximately $301.4 billion. The research finds that regional U.S. banks face the greatest risk, while investment banks face the least.
Kendrick noted that Tether and Circle—the world’s two largest stablecoin issuers—hold only 0.02% and 14.5%, respectively, of their reserves in bank deposits, implying “virtually no re-depositing occurs.” Standard Chartered forecasts that by the end of 2028, approximately $500 billion in deposits could flow out of banks in developed markets, and roughly $1 trillion could flow out of banks in emerging markets.
