Standard Chartered Forecasts $1 Trillion Flow Into Stablecoins From Emerging Markets: Report

Standard Chartered reportedly estimated that up to $1 trillion could move from emerging-market bank deposits into stablecoins over the next three years.

According to a note to investors cited by TheBlock, Standard Chartered’s Geoffrey Kendrick and Madhur Jha described stablecoins as “USD-based bank accounts” for many users in emerging markets.

The firm projected the global stablecoin market could reach $2 trillion by the end of 2028. It estimated that roughly two-thirds of the current stablecoin supply may already function as savings in emerging-market bank accounts.

This comes after J.P. Morgan Global Research offered a more conservative outlook in September, projecting the market could grow between $500 billion and $750 billion over the same period. “Overall, while adoption is poised to grow further, it might be at a slower pace than some anticipate,” a J.P. Morgan analyst said, highlighting the nascent state of the ecosystem and the gradual build-out of infrastructure.

The overall stablecoin market recently crossed $300 billion in market capitalization, according to DefiLlama data, with Tether (USDT) leading at $176.94 billion and Circle’s USD Coin (USDC) following at $74 billion. The space is currently dominated by U.S. dollar-backed stablecoins, which command over 99% of the market. The Russian ruble-backed stablecoin, A7A5, is currently the world’s largest non-U.S. dollar stablecoin, with a market capitalization of $500 million. 

Emerging markets remain key drivers of adoption. Chainalysis’s 2024 Geography of Crypto Report highlighted India, Nigeria, and Indonesia as leaders in stablecoin usage. According to the report, India dominates overall and retail-sized transactions, Nigeria uses stablecoins to facilitate cross-border payments and hedge against currency volatility, and Indonesia primarily deploys them in DeFi applications.

Read also: BNB Hits All-Time High, Leads Altcoin Rally After Bitcoin’s Weekend Surge Lifts Crypto Market To Record

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