Stablecoin Prediction: Standard Chartered Sees $1T Exit by 2028

Standard Chartered has predicted that more than $1 trillion could move out of emerging market banks and into stablecoins by 2028, reports Cointelegraph. The bank’s research team believes that as crypto adoption grows, people in developing countries will turn to digital dollars as a safer and easier way to save money.

🚨 LATEST: Standard Chartered predicts over $1T may exit emerging market banks into stablecoins by 2028 as crypto adoption accelerates. pic.twitter.com/T8D9sgipPt

— Cointelegraph (@Cointelegraph) October 7, 2025

A Massive Shift on the Horizon

Standard Chartered’s research shows that the amount of money held in stablecoins in emerging markets could rise from $173 billion today to $1.22 trillion within three years. That means more than $1 trillion may leave the traditional banks and enter the digital asset space.

The report notes that most stablecoins are already used in these regions. Around two-thirds of the current global stablecoin supply is held in emerging markets. Many people there already treat stablecoins like U.S. dollar bank accounts. They use them to keep their savings safe from inflation and unstable local currencies. 

Why People Are Moving to Stablecoins

There are a lot of reasons behind this trend.

• Protection from inflation: In some countries, local currencies lose value fast. A U.S. dollar–pegged stablecoin offers a safer store of value.
  
• 24-hour access: Stablecoins are available anytime through mobile apps. People don’t need to depend on banking hours or face sudden system outages.
  
• Ease of sending money: For those receiving money from abroad, stablecoins make remittances cheaper and faster.
  
• Trust factor: When local banks are unstable or under government pressure, people see stablecoins as more reliable.
  

Examples from places like Venezuela show how this shift is already happening. With inflation out of control, many Venezuelans now use USDT (Tether) for daily payments. Shops even list prices in stablecoins instead of the local currency.

Challenges That Could Slow the Trend

Still, this growth faces some challenges.

Regulators in the U.S. and other countries are making rules stricter on stablecoin issuers. New laws need companies to prove their coins are backed by real assets. This could limit how fast new coins spread.

Some analysts are also less positive than Standard Chartered. For example, JPMorgan estimates that the total stablecoin market might only reach $500 billion by 2028. That’s half of what Standard Chartered expects.

There are also some technical risks. If users lose confidence in a stablecoin’s backing, it could lose its peg to the dollar. And if central banks release their own digital currencies (CBDCs), people might prefer those over private stablecoins.

What This Means for Banks and Governments

If people move their savings into digital dollars, local banks could lose big deposits. That would increase their funding costs and reduce their lending ability. Banks might need to change their business models, offering digital wallets or working with blockchain systems.

Governments and central banks will also face new challenges. They’ll need to protect financial stability while letting innovation continue. Clear rules for stablecoin reserves and cross-border payments will be key.

The Bottom Line

The next few years could change how people in emerging markets store and move their money. Standard Chartered’s stablecoin prediction shows that stablecoins are not just trading tools anymore. They are becoming a real alternative to traditional banking, especially in places where the trust in local currencies is fading.