Banking Giant Issues Dire Warning: Stablecoins Could Drain $1 Trillion From Global Banks by 2028

**Major Banking Alert: Stablecoins Threaten $1 Trillion Bank Deposit Exodus by 2028**

Banking giant Standard Chartered has issued a stark warning that stablecoins could trigger a massive $1 trillion drain from global bank deposits by 2028. The cryptocurrency sector analysis projects stablecoin market capitalization will explode to $1.22 trillion within four years, fundamentally disrupting traditional banking.

The blockchain-based digital assets have already demonstrated their power by functioning as USD accounts across emerging markets (EM), where high inflation has accelerated cryptocurrency adoption. This DeFi revolution poses unprecedented challenges for traditional financial institutions as investors increasingly turn to Bitcoin and stablecoin alternatives.

Regulatory responses are intensifying globally. The U.S. GENIUS Act has established new stablecoin frameworks, while the Bank of England proposed deposit caps to limit cryptocurrency market impact. Emerging market banks face mounting pressure as citizens seek stable digital currency alternatives amid volatile local currencies.

This trillion-dollar shift represents more than market evolution—it signals a fundamental transformation in global finance. As stablecoins gain mainstream acceptance, traditional banks must adapt quickly or risk losing substantial market share to decentralized finance platforms and cryptocurrency ecosystems.