Standard Chartered Warns of $500B Stablecoin Shift Risk to U.S. Regional Banks

Analysts at Standard Chartered have issued a warning that U.S. regional banks are the most vulnerable financial institutions amid a potential large-scale shift towards stablecoins. The bank's research highlights a scenario where up to $500 billion in deposits could migrate from the traditional banking system to stablecoin issuers. This massive capital movement poses a significant risk to regional banks, which rely more heavily on deposit funding compared to their larger, globally systemic counterparts. The shift is driven by the growing demand for digital currency efficiency and yield opportunities in the crypto ecosystem. Standard Chartered's report underscores a critical stress point for the banking sector as digital asset adoption accelerates.