Stablecoins are a real threat to bank deposits, says Standard Chartered
Stablecoin growth could drain bank deposits, with regional US banks most exposed, Standard Chartered’s Geoff Kendrick warned.
Stablecoins pose a real risk to bank deposits both globally and in the United States, according to a new report by Standard Chartered analysts.
The delay of the US CLARITY Act — a bill proposing to prohibit interest on stablecoin holdings — is a “reminder that stablecoins pose a risk to banks,” Geoff Kendrick, global head of digital assets research at Standard Chartered, said in a report on Tuesday seen by Cointelegraph.
“We estimate that US bank deposits will decrease by one-third of stablecoin market cap,” the analyst said, referring to a $301.4 billion market of US dollar-pegged stablecoins, as measured by CoinGecko.