The stablecoin market reaches hundreds of billions of dollars, Standard Chartered warns of a real threat to bank deposits

Standard Chartered Bank released a recent report indicating that stablecoins pose a genuine threat to global and US bank deposits. According to the latest news, Geoff Kendrick, the Global Head of Digital Asset Research at the bank, estimates that as the market capitalization of stablecoins grows, US bank deposits will decrease accordingly, with regional banks being hit the hardest. The report shows that among the two largest stablecoins by market cap, Tether and Circle, there are significant differences in their reserve structures. However, this low proportion of bank deposits actually exacerbates the diversion from traditional financial systems.

Where Is the Real Threat of Stablecoins

Risk Signals Revealed by Reserve Structures

The reserve compositions of Tether and Circle differ greatly. According to data from the Standard Chartered report, only 0.02% of Tether’s reserves are bank deposits, whereas for Circle, this figure is 14.5%. This seemingly low-risk structure actually reflects a deeper issue: stablecoins are bypassing traditional banking systems.

This phenomenon implies that stablecoin users’ funds are not heavily deposited in banks but are stored in other forms such as short-term government bonds, cash, etc. This means that the diversion of stablecoins from bank deposits is direct and effective.

Different Risks Faced by Various Banks

Standard Chartered’s analysis points out that US regional banks are most affected, while investment banks are least affected. This difference reflects the varying business models of different types of banks.

Regional banks rely heavily on retail deposits as a source of funds, which is precisely the area most susceptible to stablecoin diversion. When individual and small business users choose to hold funds in stablecoins, the deposit base of regional banks is directly impacted. In contrast, investment banks mainly depend on institutional clients and trading income, with less reliance on retail deposits.

Market Size Comparison Insights

Data shows that USDT’s current market cap has reached $18.629 billion, accounting for 6.26% of the total cryptocurrency market cap, with a 24-hour trading volume exceeding $8.3 billion. This scale is already significant. Coupled with other stablecoins like Circle’s USDC, the total size of the stablecoin market is even larger.

In comparison, many small and medium regional banks have total assets in this range. As the market cap of stablecoins continues to grow, the diversion effect on bank deposits will gradually become apparent.

The Deeper Implications of the Delay in the US CLARITY Act

The report specifically mentions that the delay of the US CLARITY Act serves as a reminder of the risks stablecoins pose to banks. The core purpose of this legislation is to regulate stablecoin issuance and reserve requirements. The delay indicates that current stablecoin operations still lack a clear regulatory framework.

Under this uncertainty, the growth of stablecoins may accelerate, as market concerns about their compliance are relatively small. This provides more room for stablecoin development while also increasing the impact on traditional banking systems.

Outlook and Reflections

The threat of stablecoins to the banking system is structural. As the cryptocurrency market matures and user bases expand, the appeal of stablecoins as on-chain payment and store of value tools will continue to grow. Regional banks need to take this challenge seriously.

From a regulatory perspective, advancing policies like the CLARITY Act will be crucial. Clear regulatory frameworks can ensure the safety of stablecoins and also help protect the stability of traditional banking systems.

Market-wise, the competitive relationship between stablecoins and bank deposits may persist long-term, but this could also drive banks to innovate, enhancing their attractiveness and efficiency.

Summary

Standard Chartered’s report reminds us that stablecoins have evolved from fringe assets to forces with substantial impact on the financial system. The low bank deposit proportion in their reserves appears safe but actually accelerates the diversion from traditional banks. Regional banks face the greatest pressure, which could become a key driver for future financial system adjustments. With improved regulation and market development, the relationship between stablecoins and traditional banking will enter a new equilibrium stage.