How stablecoins threaten to drain $1tn from banks in emerging markets

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  • Source: Dapnet
  • 10/07/2025
Top 6 stablecoins by CoinWire Japan is licensed under Unsplash unsplash.com

Stablecoins could trigger the largest capital flight from emerging markets banks in history.

That’s according to UK bank Standard Chartered, which forecasts that as much as $1 trillion could move into dollar-pegged digital currencies over the next three years as savers in fragile economies seek deposit stability.

“Stablecoins give consumers and corporates in emerging markets new access to what is effectively a USD-based bank account,” said Geoffrey Kendrick, head of digital assets research at Standard Chartered, in a report to investors seen by DL News. “That makes deposit flight a greater risk in emerging markets than in developed markets.”

The warning comes as stablecoin issuers are flying high on the back of a slew of victories.

Over the past 10 months, US President Donald Trump’s pro-crypto policies have fuelled the crypto industry’s impressive growth. He has appointed industry supporters to key government positions, fired off a barrage of pro-crypto executive orders, and signed a landmark stablecoin bill into law.

Source: DL News
Top 6 stablecoins by CoinWire Japan is licensed under Unsplash unsplash.com