Wall Street Institutions Race to Capture Stablecoin Market Amid Deposit Flight Risks

Major financial institutions, including Bank of America and Citi, are intensifying efforts to manage the $1.9 trillion stablecoin sector to prevent further erosion of their customer base. Standard Chartered previously projected that stablecoins could siphon approximately $500 billion from U.S. bank deposits by the end of 2028, posing a significant threat to regional banks that rely heavily on interest rate spreads.