Standard Chartered Bank has warned that the adoption of dollar-denominated stablecoins could lead to a significant outflow of up to $1 trillion from emerging market bank deposits. The report highlights that users in these markets are increasingly using stablecoins to hedge against local currency instability and capital controls. This shift is expected to accelerate the movement of deposits towards digital assets. The bank also forecasts that the total market capitalization of stablecoins could reach $2 trillion within the next three years. This trend presents a challenge to traditional banking systems, especially regional and community banks that depend on consumer deposits for lending activities.