Standard Chartered Bank released a report on January 28, 2026.
The report warns that stablecoin adoption could cause $500 billion in deposits to exit traditional banks by 2028.
The analysis identifies crypto firms, such as Coinbase Global, as key players in this shift. Landmark digital-asset legislation could accelerate this trend.
The report points to competitive tension between crypto exchanges and banks over yield-bearing stablecoin products.
Coinbase currently offers 3.5% rewards on customer USDC balances. Banking lobbyists fear this practice poses a significant deposit flight risk.
Coinbase CEO Brian Armstrong recently criticized bank lobbying efforts at the World Economic Forum. Armstrong called attempts to ban such competition "un-American" and harmful to consumers.