U.S. Regional Banks in Danger of $500 Billion Stablecoin Risk

Standard Chartered Warns

Standard Chartered stated that regional banks in the United States are at the highest risk from the negatives created by stablecoins. The main reason for this risk is said to be these banks' excessive reliance on net interest margin (NIM) for generating income.

Standard Chartered projects that approximately one-third of the growing stablecoin market will originate from bank deposits in developed markets. This situation could lead to an estimated 500 billion dollars in outflows by 2028.

It is reported that ongoing legislative discussions regarding whether stablecoin providers can pay interest are delaying the passage of market structure legislation. However, Standard Chartered expects these laws to be approved in March.