A new report from Standard Chartered suggests that the rise of stablecoins could trigger one of the biggest financial shifts in decades — with over $1 trillion potentially flowing out of emerging market banks and into stablecoins by 2028.
In its latest research note, the bank’s Global Research division said adoption of US dollar–pegged crypto assets is accelerating rapidly, especially in developing economies where local currencies face inflation and capital controls. The report highlights a growing trend of individuals and businesses turning to stablecoins for savings, payments, and cross-border transfers.
“Stablecoin ownership has been more prevalent in emerging markets than in developed ones,” the bank noted, emphasizing that users see them as a way to hold digital US dollar accounts outside traditional banking systems.
Standard Chartered projects that stablecoin savings could rise from $173 billion today to $1.22 trillion by 2028, representing a potential outflow of around $1 trillion from emerging market (EM) banking systems over the next few years.
Stablecoins Already Dominating Emerging Markets
According to the report, emerging markets are already at the forefront of this trend, with roughly two-thirds of the global stablecoin supply held in EM-based wallets.
The bank said that limited USD access and unstable banking systems are pushing consumers toward digital alternatives. Stablecoins, backed 1:1 by dollar reserves under regulations like the U.S. GENIUS Act, offer lower credit risk and round-the-clock accessibility compared to local banks.
However, Standard Chartered warned that this could lead to a “deposit flight” from traditional EM banks to stablecoin-based platforms — a shift that could challenge the stability of local financial systems. Countries with high inflation, weak reserves, or heavy reliance on remittances are seen as most vulnerable.
Escaping Inflation: From Venezuela to Brazil
The report points to Venezuela as a prime example of this phenomenon. With inflation still running between 200% and 300%, many Venezuelans now use stablecoins like Tether (USDT) — locally known as “Binance dollars” — for both daily payments and long-term savings.
Chainalysis data shows Venezuela ranked 13th in global crypto adoption in 2024, with a 110% surge in usage over the year. From small shops to large retailers, stablecoins are increasingly being used for commerce and remittances, which made up 9% of the country’s $5.4 billion in remittance inflows last year.
Similarly, Argentina and Brazil are seeing widespread use of USDT and USDC as citizens seek protection from currency devaluation. Fireblocks reports that 60% of crypto transactions in these two countries now involve stablecoins — a clear signal that digital dollars are becoming the preferred way to preserve value and make payments.
The Global Dollarization of Crypto
As stablecoin adoption accelerates, Standard Chartered believes the world is moving toward a digital dollarization phase, where stablecoins become central to the global financial system — particularly in regions where local currencies are unstable.
If current trends continue, stablecoins could become the dominant form of dollar exposure for millions of people by the end of the decade — reshaping not just emerging market banking, but the very nature of global money movement.
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