November 20, 2025

Will The Growth Of Stablecoins Drain Bank Deposits?

IntelME Verdict

Market Impact

TL;DR

The surge in stablecoin issuance could lead to significant withdrawals from traditional bank deposits, potentially impacting the banking system, but banks have the opportunity to compete by issuing their own stablecoins.

Analysis

The growth of stablecoins poses a significant market impact as it could lead to substantial withdrawals from traditional bank deposits, potentially affecting banks' funding sources and lending capabilities. However, banks have the strategic opportunity to compete by issuing their own stablecoins, mitigating the risk of losing deposits to non-bank issuers.

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