Stablecoin Surge Could Trigger $1T Exit From Emerging Market Banks: Standard Chartered

Stablecoin Surge Could Trigger $1T Exit From Emerging Market Banks: Standard Chartered

By Coindesk
The sharp rise in stablecoin usage could drain as much as $1 trillion from emerging market banks over the next three years as savers seek the safety and liquidity of dollar-pegged digital assets, Standard Chartered said in a Monday report.

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**Stablecoin Adoption Could Drive $1 Trillion Bank Exodus from Emerging Markets, Standard Chartered Warns**

Standard Chartered's latest cryptocurrency market analysis reveals a potential seismic shift in global banking, with stablecoins threatening to drain up to $1 trillion from emerging market financial institutions within three years. The banking giant's Monday report highlights how dollar-pegged digital assets are attracting savers seeking enhanced liquidity and stability compared to traditional banking products.

This massive capital migration toward blockchain-based stablecoins underscores the growing mainstream adoption of cryptocurrency infrastructure in developing economies. As DeFi protocols and digital asset platforms offer competitive yields and 24/7 accessibility, emerging market depositors are increasingly abandoning conventional banking services.

The projected $1 trillion outflow represents a significant disruption to traditional financial systems, potentially accelerating cryptocurrency integration across global markets. Standard Chartered's forecast emphasizes how stablecoin technology is reshaping monetary flows, particularly in regions where local currencies face volatility challenges.

This development signals broader cryptocurrency market maturation, with stablecoins serving as crucial bridges between traditional finance and the expanding digital asset ecosystem. The trend could fundamentally alter banking landscapes across emerging economies.

Article Details

Market Sentiment
positive
Category
institutional
Reading Time
1 min read
Article Type
Article
Topics & Keywords
#Institutional#Market

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