A report by Standard Chartered analysts warns that stablecoins present a significant risk to bank deposits globally and in the US. The delay of the CLARITY Act in the US highlights this risk, as it aims to ban interest on stablecoin holdings. US bank deposits could decrease by a third of the $301.4 billion stablecoin market cap.

Standard Chartered’s research shows that regional US banks are most exposed to the risks of stablecoin adoption, while investment banks are the least exposed. Net interest margin income, a key profitability metric, is at risk due to potential deposit outflows from banks. The report names specific banks like Huntington Bancshares and M&T Bank as particularly exposed.

The exposure of US bank deposits to stablecoin risks depends on various factors like the location of issuer’s deposits and domestic versus foreign demand. Tether and Circle, operators of major stablecoins, hold a small percentage of reserves in bank deposits, increasing the risk of deposit outflows. Domestic demand for stablecoins can drain local bank deposits, impacting overall banking stability.

Standard Chartered predicts that around two-thirds of stablecoin demand comes from emerging markets, potentially leading to significant deposit outflows from developed-market banks. The CLARITY Act is expected to pass by the end of the first quarter of 2026, aiming to address risks not only from stablecoins but also from the expansion of real-world assets.

Read more at Cointelegraph: Stablecoins Threaten Bank Deposits, Standard Chartered Warns