Standard Chartered Warns of $500B Bank Run if Stablecoin Growth Continues
A Standard Chartered analyst warned on Jan. 29, 2026 that accelerating stablecoin adoption is creating a roughly $500 billion headwind for U.S. banks, raising the prospect of bank‑run‑style pressure if the shift from bank deposits to crypto‑based cash equivalents persists. The note argues that as users park liquidity in stablecoins and nonbank custodians, banks face rising deposit outflows and diminished funding stability, which could compress lending and force higher funding costs.
The warning elevates systemic and regulatory concerns: policymakers may tighten oversight of stablecoin reserve practices and liquidity tools, while banks could lean on central bank facilities or curtail credit to preserve balance‑sheet resilience. For crypto firms and investors the takeaway is clear — transparency and robust reserve management will be central to preventing broader market stress as stablecoins grow in size and use.