Stablecoins could suck $1 trillion from EM banks in next three years, Standard Chartered estimates

**Stablecoins Could Drain $1 Trillion from Emerging Market Banks as Crypto Adoption Surges**

Standard Chartered warns that the explosive growth of U.S. dollar-backed stablecoins could extract approximately $1 trillion in deposits from emerging market banks within three years. This massive cryptocurrency shift is accelerated by Donald Trump's pro-crypto policies, which are driving unprecedented digital asset adoption across developing economies.

The banking giant's analysis highlights how blockchain-based stablecoins are becoming preferred alternatives to traditional banking systems in emerging markets, where citizens seek dollar-denominated assets for stability. This trend represents a significant disruption to conventional financial infrastructure, as DeFi protocols and cryptocurrency platforms offer accessible alternatives to local banking services.

The $1 trillion projection underscores stablecoins' growing role in global finance, potentially reshaping monetary flows between developed and emerging economies. As Bitcoin and broader cryptocurrency markets gain institutional acceptance, stablecoins serve as crucial bridges between traditional finance and digital assets.

This development could fundamentally alter emerging market banking landscapes, forcing traditional financial institutions to compete with decentralized alternatives. The cryptocurrency revolution's impact on global banking systems appears increasingly inevitable as digital assets gain mainstream adoption worldwide.