A new report by S&P Global Ratings suggests stablecoins may account for up to 20% of bank deposits in certain emerging market economies, signaling a potential shift in the stability and funding dynamics of those financial systems. The finding highlights the growing use of digital assets pegged to stable values as an alternative to traditional deposits. The report outlines how such a shift could affect reserve management, liquidity profiles, and risk landscapes faced by banks in these markets.
Regulators may reassess policy tools as stablecoins gain a larger share of deposit funding in emerging markets. The S&P Global Ratings analysis underscores the need for heightened oversight, clear regulatory frameworks, and robust risk management to address liquidity and credit risks linked to stablecoins. Policymakers will also monitor potential spillovers into traditional banking and cross-border payments as crypto-based money flows expand.
The evolving landscape could prompt banks to adjust reserve holdings and liquidity buffers, while authorities consider updated stress tests and governance standards. As adoption grows, supervisory regimes may need to adapt to new funding dynamics and ensure financial stability.
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