The global banking system is entering a period of quiet but profound change. Stablecoins, once seen as a niche tool for crypto traders, are now moving into the centre of discussions among regulators, banks, and large corporations.
Recent warnings from Standard Chartered and fresh data on crypto payment adoption point to the same conclusion: digital dollars are no longer just an alternative.
They are becoming a structural force that challenges how money is stored, moved, and used. What follows is not a speculative future scenario, but a shift already underway, with implications for banks, businesses, and consumers alike.
Bank Deposit Outflows Accelerate as Stablecoins Gain Yield and Regulatory Clarity
Standard Chartered’s latest projection outlines a scenario that would have sounded extreme only a few years ago.
By the end of 2028, the bank expects around $500 billion to flow out of banks in developed markets into stablecoins, with an additional $1 trillion potentially leaving banks in emerging markets.
The assumption behind this forecast is that stablecoin market capitalisation could reach $2 trillion by that point, with roughly one third of the growth coming directly from traditional bank deposits.
At the core of this migration lies a simple economic incentive. In the United States, savings accounts often pay around 0.1%, while some stablecoins can offer yields closer to 4%.
This interest rate gap changes saver behaviour quickly, especially when stablecoins are increasingly regulated and easier to use.
Bank of America’s CEO Brian Moynihan has already warned that up to $6 trillion, or around 30% to 35% of US commercial bank deposits, could be at risk if interest bearing stablecoins become widely accessible.
His comments were grounded in a US Treasury study showing that such products would push banks towards more expensive wholesale funding, raising borrowing costs across the economy.
Regional banks stand out as the most exposed. According to Standard Chartered’s digital assets research, their heavy reliance on net interest margins makes them particularly sensitive to deposit losses.
Institutions such as Huntington Bancshares, M&T Bank, Truist Financial, and CFG Bank are named as vulnerable examples.
Huntington’s recent $7.4 billion acquisition of Cadence Bank will make it one of the largest regional banks by assets, but also increases its exposure to deposit flight at a time when competition for funding is intensifying.
Truist’s missed revenue expectations in late 2025 and modest loan growth guidance underline how narrow margins leave little room for shocks.
There is a clear historical parallel. In the 1970s, rising inflation and capped bank deposit rates led savers to money market funds, which offered market based returns. What began as a workaround became a structural change.
By the early 1980s, money market funds accounted for roughly 10% of bank deposit volume, and banks lost their exclusive role as intermediaries between savers and capital markets.
Stablecoins appear to be following a similar trajectory, accelerated by digital infrastructure and global accessibility.
Regulation is now catching up. The GENIUS Act, effective since mid 2025, introduced the first comprehensive federal framework for stablecoins in the US, mandating full reserve backing and federal oversight.
At the same time, the proposed CLARITY Act has reopened debate around whether stablecoins should be allowed to pay interest at all. While its passage remains uncertain, the regulatory conversation itself signals that stablecoins are no longer viewed as peripheral.
Tether’s launch of USAT, a regulated US focused stablecoin issued via Anchorage Digital Bank, further reflects this shift. Stablecoins are increasingly designed to coexist with the financial system, not operate outside it.
Institutional Adoption of Crypto Payments Moves Stablecoins into Everyday Commerce
While banks grapple with deposit outflows, another trend is unfolding on the payments side. A PayPal backed survey of more than 600 payment strategy decision makers shows that crypto payments, driven largely by stablecoins, are moving closer to mainstream adoption.
Nearly 85% of respondents expect crypto payments to be commonly used at checkout within five years, and almost 90% say customers have already asked about paying with digital assets.
What stands out is where adoption is happening first. Large enterprises are leading. Around half of companies with more than $500 million in annual revenue already accept crypto payments, compared with roughly a third of small and midsize businesses.
Among those that do accept crypto, digital assets account for more than a quarter of total sales, a figure that challenges the idea that crypto payments are merely experimental. Three quarters of these merchants reported growth in crypto based sales over the past year.
The hesitation among businesses appears less about demand and more about execution. Almost 90% of surveyed merchants said they would test crypto payments if the user experience matched traditional card payments and if setup were similarly straightforward.
This is where stablecoins play a decisive role. Their price stability removes one of the main concerns for businesses, while integration through established platforms reduces operational complexity.
Regulatory clarity has also been a catalyst. The GENIUS Act has given merchants and payment providers greater confidence that stablecoin transactions can fit within existing compliance frameworks.
PayPal’s early move into issuing its own stablecoin has since been mirrored by banks and fintech firms, signalling that crypto payments are becoming an extension of existing payment rails rather than a replacement.
For large firms, stablecoins offer faster settlement, lower cross border costs, and programmable features that traditional payment systems struggle to match.
This trend is particularly relevant in emerging markets, where stablecoins already play a functional role in everyday finance. Latin America saw stablecoin growth of nearly 90% in 2025, driven by inflation, currency controls, and remittance flows.
In regions where trust in local currencies is fragile, stablecoins act as both a store of value and a payment tool. Countries such as Argentina illustrate how stablecoins can bypass capital controls while still integrating with global commerce.
Banks are not standing still. Tokenised deposits are emerging as a potential counterweight. These products aim to combine the programmability and efficiency of blockchain based money with the security of traditional bank deposits, including deposit insurance.
Some industry leaders expect 2026 to mark the rise of tokenised deposits, positioning them as a bank native alternative to stablecoins. Whether they can scale fast enough remains an open question.
Conclusion
Stablecoins are no longer a side story in the evolution of finance. They are actively reshaping how money moves out of banks and into new digital forms, while simultaneously embedding themselves into mainstream payment systems.
For regional banks, the challenge is immediate and structural, driven by yield competition and changing depositor behaviour. For large businesses, stablecoins are becoming a practical tool for payments rather than a speculative experiment.
The direction of travel is clear. The question is not whether stablecoins will change banking and commerce, but how quickly institutions can adapt before the shift becomes irreversible.