Standard Chartered Predicts Major Bank Outflows to Stablecoins

Standard Chartered’s Geoffrey Kendrick forecasts a $1.50 trillion outflow from global banks by 2028, due to stablecoins’ attractive features, redefining the future of financial markets.

Stablecoins, by offering instant settlement and superior yields, challenge traditional banking, potentially reshaping financial sector dynamics significantly.

$1.5 Trillion Bank Outflow to Stablecoins by 2028

Standard Chartered Bank’s latest report highlights the potential shift of $1.5 trillion from banks to stablecoins by 2028. Geoffrey Kendrick emphasizes stablecoins’ appeal due to instant settlements and effective yield strategies. Banks face pressure as net interest margins decline. U.S. banks are particularly vulnerable, with stablecoins backed by U.S. Treasuries. Kendrick’s report suggests Tether and Circle’s limited bank reserves accelerate outflow trends. Observers are concerned about long-term implications on banking stability and potential regulatory responses.

Observers are concerned about long-term implications on banking stability and potential regulatory responses.

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“Stablecoins will hold reserves mostly in U.S. Treasuries… causing near-total fund outflows from banking.” — Geoffrey Kendrick, Global Head of Digital Assets Research, Standard Chartered Bank

Stablecoins’ Impact on Banking: Historical and Current Analysis

Did you know? In 2028, stablecoin-driven bank outflows are projected to be 300% higher than during the 2008 financial crisis, marking the first major blockchain disruption in banking.

As of January 28, 2026, Tether USDt (USDT) trades at $0.99, with a market cap of $186.26 billion and a 6.17% market dominance, according to CoinMarketCap. Recent trades hit $87.69 billion, showing a slight 1.95% decrease. The price saw a 0.04% drop in 24 hours. Over 90 days, it decreased by 0.16%, impacting market stability.

Coincu analysts note potential regulatory shifts given increased stablecoin adoption. Existing regulations like the GENIUS Act may need adjustments to maintain banking system integrity while encouraging financial innovation.