Standard Chartered Predicts $500 Billion Shift to Stablecoin | US Crypto News
Welcome to the US Crypto News Morning Briefing—your important rundown of crucial developments in crypto for the day forward.
Grab a espresso and settle in—issues in banking and crypto are about to get fascinating. What began as a quiet nook of the digital asset market is now nudging its approach into the core of conventional finance (TradFi). Some of the most important shifts should be on the horizon, and never all banks are equally prepared for them.
Crypto News of the Day: Standard Chartered Warns $500 Billion in US Bank Deposits Could Flow to Stablecoins by 2028
Standard Chartered first warned of the risk stablecoins pose to TradFi banks in October, as reported in a earlier US Crypto News publication. Now the financial institution is issuing one other warning, solely this time, with a timeline.
The speedy adoption of stablecoins might pose a major risk to US banks, in accordance to Standard Chartered’s Head of Digital Asset Research, Geoff Kendrick.
In a report launched at present, Kendrick initiatives that as a lot as $500 billion (roughly one-third of US financial institution deposits) might migrate into stablecoins by the tip of 2028.
“The tail is beginning to wag the canine,” Kendrick stated, highlighting the rising affect of stablecoins on conventional banking operations.
He famous that this shift is not limited to emerging markets, the place he beforehand projected round $1 trillion in deposit outflows over the identical interval, however is more and more related to developed markets, together with the U.S.
Using internet curiosity margin (NIM) earnings as a share of complete income as a threat indicator, Kendrick identifies regional banks as essentially the most uncovered.
Deposits stay a core driver of NIM, which means any vital outflows to stablecoins might immediately impact bank earnings.
In distinction, diversified and funding banks are comparatively insulated from these pressures due to broader income streams.
Regulatory Uncertainty Compounds the Risk for US Banks
The latest delay in the US CLARITY Act, supposed to create a complete regulatory framework for digital property, highlights banks’ potential vulnerability.
The newest draft prohibits digital asset service providers from paying interest or yield to customers holding stablecoins. Notably, this restriction prompted Coinbase to remove certain offerings.
Although Kendrick expects the CLARITY Act to cross by the tip of Q1 2026, the delay highlights the continuing challenges that US banks might face as digital asset adoption accelerates.
The threat is not only theoretical. Stablecoins might shift core banking capabilities akin to funds and deposits away from TradFi establishments, making a structural problem for banks that rely closely on deposit-driven earnings.
The Standard Chartered government means that regional banks, particularly, want to put together for the potential of significant deposit outflows over the following a number of years.
“I strive to decide which banks are comparatively extra/much less uncovered to this threat…regional banks are most uncovered,” he indicated.
Therefore, the brand new US evaluation extends the priority from rising to developed markets, signaling a worldwide reassessment of banking publicity to digital property.
Ethereum Hits New Highs as Institutional Buying and Macro Tailwinds Bolster Crypto Markets
Despite these headwinds, the broader crypto ecosystem is displaying indicators of resilience. Ethereum exercise continues to hit all-time highs, fueled by post-Fusaka upgrades that have improved capacity and sustained institutional curiosity.
BitMine (BMNR), for instance, has increased its Ethereum holdings to practically 5% of its Digital Asset Treasury, with plans to proceed shopping for.
Macro developments, together with easing stress on international threat property and favorable expectations for US financial coverage underneath potential Fed leadership changes, additional help market stability.
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Here’s a abstract of extra US crypto information to comply with at present:
- Tether buys gold like a Central Bank—solely sooner and and not using a mandate.
- Ethereum in ETFs enjoys $110 million in inflows whereas institutional ETH wipes out.
- Asia doesn’t buy Trump after he cried wolf too usually.
- Bitcoin value’s rise to $100,000 will warrant a pit-stop at this level.
- What VanEck’s Avalanche ETF debut reveals about investor sentiment in January.
- XRP value eyes a domino impact to relive the $3.30 dream – Here’s how.
- Bitcoin job listings grow 6% in 2025: Here’s what employers are on the lookout for.
Crypto Equities Pre-Market Overview
| Company | Close As of January 26 | Pre-Market Overview |
| Strategy (MSTR) | $160.58 | $160.82 (+0.15%) |
| Coinbase (COIN) | $213.48 | $214.70 (+0.57%) |
| Galaxy Digital Holdings (GLXY) | $31.28 | $31.51 (+0.74%) |
| MARA Holdings (MARA) | $9.98 | $10.05 (+0.70%) |
| Riot Platforms (RIOT) | $16.23 | $16.40 (+1.05%) |
| Core Scientific (CORZ) | $19.05 | $19.31 (+1.36%) |
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