November 20, 2025

Will The Growth Of Stablecoins Drain Bank Deposits?

IntelME Verdict

Risk Factor

TL;DR

The surge in stablecoin issuance could potentially drain trillions from traditional bank deposits, impacting interest rates and lending, but banks have the opportunity to compete through the GENIUS Act.

Analysis

The rapid growth of stablecoins poses a risk to traditional bank deposits, potentially leading to trillions being drained from the banking system. This could impact interest rates, lending activities, and overall financial stability. Finance professionals need to monitor this trend closely for its implications on investment strategies and market dynamics.

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