Major financial institutions move to capture the $1.9 trillion stablecoin shift

Wall Street institutions are moving to secure a role in the expanding stablecoin market as banks face the risk of losing customer deposits and payments activity. Standard Chartered estimated in January that stablecoins could draw approximately $500 billion from US bank deposits by the end of 2028. Regional banks may be particularly vulnerable because their business models rely heavily on the difference between the interest paid to depositors and the income generated from loans. Against that backdrop, 21 major financial institutions are now involved in efforts connected to the stablecoin shift, including Bank of America and Citi, according to CryptoSlate. The developments highlight the growing competition between traditional banks and digital-dollar networks for control of customer relationships and financial flows. The broader shift is valued at $1.9 trillion in the source headline.