Standard Chartered Bank projects a significant shift in the global financial landscape as stablecoins gain momentum in emerging markets. The bank forecasts that emerging market banks could face withdrawals exceeding $1 trillion by 2028 as consumers move their savings into digital dollar assets. This transition marks a fundamental change in how people in developing economies manage their money and highlights the growing influence of digital currencies in the global financial system.
Standard Chartered warns stablecoin use could trigger over $1 trillion in withdrawals from emerging market banks. pic.twitter.com/yyd9z7wlwb
— Messari (@MessariCrypto) October 6, 2025
High-Risk Markets in Focus
Several countries face particular vulnerability to this financial shift. Nations like Egypt, Pakistan, Bangladesh, and Sri Lanka stand at the forefront of this transformation. Standard Chartered estimates these outflows could represent about 2% of total deposits in high-risk economies. The trend gains additional momentum in markets struggling with weak currencies and high inflation rates. Countries with both fiscal and current account deficits, such as Turkey, India, and Brazil, face increased exposure to this financial evolution.
The Stablecoin Advantage
Stablecoins offer compelling benefits that drive their adoption in emerging markets. These digital assets provide immediate, borderless access to stable value without traditional banking intermediaries. Users can protect their wealth from local currency depreciation through direct access to dollar-denominated assets. The market shows particular strength in regions with weak currencies, where people prioritize financial security over potential yields. Standard Chartered anticipates the global stablecoin market will expand to $2 trillion by 2028, with emerging markets accounting for two-thirds of the demand.
Reshaping Global Finance
This shift toward stablecoins represents more than a temporary trend in global finance. Financial experts describe it as a structural realignment in how money moves across borders. The end of zero-interest-rate policies has accelerated stablecoin adoption as users seek alternatives to volatile local currencies. These digital assets continue to gain traction due to their effectiveness in cross-border payments and wealth preservation. Standard Chartered emphasizes that emerging market regulators must adapt quickly through digital currency initiatives or upgraded payment systems to address these challenges.
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