Standard Chartered analysts have highlighted the potential threat stablecoins pose to global and U.S. bank deposits. In a report released on January 27, Geoff Kendrick, Global Head of Digital Asset Research, emphasized that the delay in the U.S. CLARITY Act underscores the risks stablecoins present to traditional banking. Kendrick predicts a decline in U.S. bank deposits as stablecoin market capitalization increases, with regional banks being most vulnerable. The report also revealed that only 0.02% of Tether's and 14.5% of Circle's reserves are held in bank deposits, suggesting a minimal rate of redeposit into the banking system. This indicates that as stablecoins grow, they could significantly impact the liquidity and deposit base of banks, particularly smaller regional institutions.