Standard Chartered Predicts $1 Trillion Stablecoin Expansion by 2028

• $1 trillion could migrate from banks to stablecoins
• Emerging markets lead growth in digital savings
• Dollar-pegged stablecoins attract businesses and families

Standard Chartered projects that up to $1 trillion could flow from emerging market bank deposits into stablecoins by the end of 2028. According to the bank, the combination of local instability, the search for liquidity, and the appeal of digital currencies pegged to the US dollar will drive a new wave of adoption in countries outside the developed world.

Stablecoins—dollar-pegged tokens backed by cash and U.S. Treasury bonds—are emerging as accessible, low-cost alternatives for families and businesses seeking protection against currency devaluation. According to Geoffrey Kendrick, global head of digital asset research at Standard Chartered, and global economist Madhur Jha, these tokens already function, in practice, as "U.S. dollar-based bank accounts" in many emerging markets.

According to the study, the global market value of stablecoins is expected to reach $2 trillion by 2028, with two-thirds of that amount functioning as digital savings accounts in emerging markets. The bank estimates that these "savings accounts" could jump from the current $173 billion to $1,22 trillion, redirecting capital previously held in local banks.

Even with the US GENIUS Act, which prohibits regulated stablecoin issuers from paying direct yields, analysts believe demand will continue to grow.

“Return on capital matters more than return on capital,”

Kendrick and Jha highlighted, emphasizing investors' preference for the security of the tokenized dollar.

The research identifies Egypt, Pakistan, Colombia, Bangladesh, and Sri Lanka as the countries most vulnerable to bank deposit outflows, followed by Turkey, India, China, Brazil, South Africa, and Kenya. The report suggests that the impact may vary depending on factors such as inflation, monetary stability, and access to digital payment infrastructure.

The bank also warns that the growth of stablecoins could put pressure on traditional banking revenues, especially in international payments and foreign exchange. However, financial institutions could mitigate the impact by acting as reserve custodians for issuers or incorporating stablecoins into their treasury and settlement operations.

The study was published amid the global expansion of the sector, whose capitalization has surpassed US$300 billion, driven by USDT and USDC, and reinforces the prediction that stablecoins are becoming a structural part of the global digital economy.