Standard Chartered‘s Global Head of Digital Assets, Geoff Kendrick, estimates $500 billion will flow from bank deposits into stablecoins by 2028. Lawmakers in Washington are debating the Digital Asset Market Clarity Act, which could permit stablecoins to pay yield and speed that shift (Ed. note: This is lower than his earlier $1 trillion estimate).
Kendrick warned that a drop in deposits would reduce net interest margin income, a key earnings driver for banks. “If deposits decrease, NIM income—an important driver of bank earnings—will also decrease.”
Regional lenders depend most on NIM, often earning more than 60% of revenue from it. Huntington Bancshares, M&T Bank, Truist Financial, and Regions Financial are among those cited.
By contrast, investment banks derive under 20% of revenue from NIM. Goldman Sachs and Morgan Stanley fall into this lower-exposure group.
Kendrick added that issuer behavior could limit damage if stablecoin firms keep reserves on deposit with banks. “If stablecoin issuers hold a large share of their deposits in the banking system where the stablecoins are issued, that should reduce net deposit flight from banks.”
Kendrick’s note included market context, as Data shows.
