Standard Chartered estimates up to $1 trillion could migrate from emerging‑market bank deposits into USD stablecoins by 2028, with outflows spanning Africa, Asia, and Latin America.

The bank’s 2025 research also projects stablecoin supply near $2 trillion by end‑2028, contingent on U.S. legislation. Under Circle’s reserve model—already common for USDC—issuers hold ~88% of backing in short‑duration U.S. T‑bills, implying up to ~$1.6 trillion of incremental bill demand if supply scales as forecast.

For EM lenders, deposit leakage to digital dollars raises funding costs, pressures credit growth, and deepens de facto dollarization, while households and SMEs gain access to more stable, 24/7 settlement rails. Competitive dynamics favor compliant, dollar‑linked instruments (e.g., USDC, USDT) integrated into cross‑border payment and fintech stacks, especially where local currencies are volatile and capital controls are porous.

If realized, the shift would rewire EM money markets and further institutionalize stablecoins as a dollar distribution channel and buyer of U.S. bills.