{"id":412,"date":"2026-02-02T08:19:31","date_gmt":"2026-02-02T08:19:31","guid":{"rendered":"https:\/\/blog.coinsignals.net\/?p=412"},"modified":"2026-02-02T08:19:31","modified_gmt":"2026-02-02T08:19:31","slug":"rising-stablecoins-could-threaten-500b-in-bank-deposits-and-net-interest-margins","status":"publish","type":"post","link":"https:\/\/blog.coinsignals.net\/index.php\/2026\/02\/02\/rising-stablecoins-could-threaten-500b-in-bank-deposits-and-net-interest-margins\/","title":{"rendered":"Rising Stablecoins Could Threaten $500B in Bank Deposits and Net Interest Margins"},"content":{"rendered":"\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"738\" height=\"415\" data-id=\"413\" src=\"https:\/\/blog.coinsignals.net\/wp-content\/uploads\/2026\/02\/IMG_1346.jpeg\" alt=\"\" class=\"wp-image-413\" srcset=\"https:\/\/blog.coinsignals.net\/wp-content\/uploads\/2026\/02\/IMG_1346.jpeg 738w, https:\/\/blog.coinsignals.net\/wp-content\/uploads\/2026\/02\/IMG_1346-300x169.jpeg 300w, https:\/\/blog.coinsignals.net\/wp-content\/uploads\/2026\/02\/IMG_1346-520x292.jpeg 520w, https:\/\/blog.coinsignals.net\/wp-content\/uploads\/2026\/02\/IMG_1346-610x343.jpeg 610w\" sizes=\"auto, (max-width: 738px) 100vw, 738px\" \/><\/figure>\n<\/figure>\n\n\n\n<p>Standard Chartered warns that stablecoins could drain up to $500 billion from bank deposits in developed markets by 2028. U.S. banks are increasingly at risk as stablecoin adoption grows, with total circulation up roughly 40% over the past year to over $300 billion.<\/p>\n\n\n\n<p><strong>Long-Term Funding Risks<\/strong><\/p>\n\n\n\n<p>Geoff Kendrick, head of crypto research at Standard Chartered, estimates that stablecoins could remove as much as $500 billion from banks in industrialized nations by 2028, equal to about one-third of the U.S. stablecoin market cap. Growth may accelerate if the Clarity Act, regulating digital assets, passes.<\/p>\n\n\n\n<p>U.S. banks face additional pressure as payment systems and core banking services shift toward stablecoins. Yield rewards on stablecoins, like Coinbase\u2019s 3.5% on USDC, are a major point of contention with bank lobbying groups.<\/p>\n\n\n\n<p><strong>Regional Banks Most Exposed<\/strong><\/p>\n\n\n\n<p>Using net interest margin as a measure of vulnerability, Kendrick identified regional U.S. banks as the most at risk. Huntington Bancshares, M&amp;T Bank, Truist Financial, and Citizens Financial Group top the list. Smaller banks are more sensitive due to reliance on traditional lending.<\/p>\n\n\n\n<p>Short-term indicators remain supportive, with regional banking stocks rising nearly 6% in January and potential interest rate cuts and stimulus aiding loan growth. However, Kendrick expects the shift toward stablecoins to continue long term. Tether and Circle hold only a small fraction of reserves in bank deposits, showing little redepositing, and individual bank exposure will depend on their response.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Standard Chartered warns that stablecoins could drain up to $500 billion from bank deposits in developed markets by 2028. U.S. banks are increasingly at risk as&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-412","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/comments?post=412"}],"version-history":[{"count":1,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/412\/revisions"}],"predecessor-version":[{"id":414,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/412\/revisions\/414"}],"wp:attachment":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/media?parent=412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/categories?post=412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/tags?post=412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}