Standard Chartered Bank: Stablecoins pose a substantial threat to bank deposits

On January 27, Standard Chartered analysts stated in a report that stablecoins pose a real risk to bank deposits globally and in the United States. Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered, pointed out in the report that the delay in the US Clarity Act highlighted the risks stablecoins pose to banks. Kendrick estimates that US bank deposits will decrease as the market capitalization of stablecoins grows, with the decrease accounting for approximately the weight of the stablecoin market capitalization. Regional banks in the US will be most affected, while investment banks will be least affected. The report shows that only 0.02% and 14.5% of Tether's and Circle's reserves are in bank deposits, respectively, indicating extremely low reinvestment rates.