Emerging Markets Could Drive $1 Trillion Shift Into Stablecoins, Says Standard Chartered

A major shift in global finance could be underway as Standard Chartered foresees a huge migration of money from emerging market banks into stablecoins.

The bank’s analysts believe as much as $1 trillion in deposits could flow into digital dollar tokens over the next three years, a reflection of how trust in local currencies continues to erode.

Unlike traditional deposits, stablecoins provide near-instant access to the U.S. dollar without the friction of local banking systems. These tokens, typically backed by cash and short-term Treasurys, have become an easy way for households and businesses in developing countries to hold digital dollars safely and move them globally within seconds.

Digital Dollars Replacing Local Banks

According to Geoffrey Kendrick and Madhur Jha from Standard Chartered, stablecoins are increasingly serving as “modern savings accounts” for users in high-inflation or low-trust economies. They argue that even new U.S. regulations, such as the GENIUS Act, which prevents issuers from paying direct yields, won’t slow adoption. In many cases, security of funds matters more than returns.

The analysts estimate the stablecoin market could double to $2 trillion by 2028, with a growing share used as savings rather than for trading or payments. Much of this growth, they predict, will come from emerging economies where stablecoins already offer a lifeline against volatile currencies and banking restrictions.

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Countries Most at Risk of Deposit Flight

Standard Chartered’s research identifies Egypt, Pakistan, Colombia, Bangladesh, and Sri Lanka as the nations most vulnerable to outflows, while others — including Turkey, India, China, Brazil, South Africa, and Kenya, could also experience accelerating adoption.

The transition won’t just involve large investors. The report suggests the next phase of growth will come from millions of small accounts holding modest sums, a gradual but powerful replacement of local deposits with digital alternatives.

The Bigger Picture

Even with zero yield, stablecoins’ 24/7 liquidity, easy redemption, and transparency give them a decisive edge over struggling local banks. Standard Chartered concludes that the global savings map is being redrawn: for many in emerging markets, the most trusted “bank” may soon be a blockchain wallet rather than a branch down the street.