06 Oct, 2025

Standard Chartered Sees $1T Shifting From Emerging Market Banks to US Stablecoins by 2028

Standard Chartered estimates that up to $1 trillion may shift from emerging market bank deposits into stablecoins over the next three years, as dollar-pegged tokens give households and companies a low-friction path to USD exposure outside local lenders.Stablecoins are dollar-pegged crypto tokens designed to keep a steady value. They’re typically backed 1:1 by cash and short-dated U.S. Treasurys, and are redeemable on demand.Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, and Madhur Jha, global economist and head of thematic research, argue that these coins have effectively become “USD-based bank accounts” for many EM users.Historically, emerging markets have been hotspots for stablecoin adoption, primarily due to their large unbanked populations. The bank says this dynamic could intensify even under the U.S. GENIUS Act’s zero-yield requirement for compliant issuers, because “return of capital matters more than return on capital.”“While the recently passed U.S. GENIUS Act aims to mitigate deposit flight by prohibiting US-compliant stablecoin issuers from paying direct yields, stablecoins are still likely to be adopted even in the absence of yield,” analysts wrote.Standard Chartered projects global stablecoin market value to reach $2 trillion by end-2028 — a forecast it notes the U.S. Treasury has referenced — and estimates that about two-thirds of today’s supply functions as savings in EM bank accounts.Stablecoin savings surge in EMsAnalysts predict that EM stablecoin “savings” could potentially rise from roughly $173 billion today to $1.22 trillion by 2028, implying more than $1 trillion in deposit outflows from EM banks.“Indeed, future growth in stablecoin use for savings is likely to expand from a small number of wallets with large balances currently to a large number of wallets with small holdings,” Kendrick and Jha stated. “At scale, small holdings will be significant; this growth is likely to occur mostly in EM, where demand for a liquid, 24/7, trustworthy alternative to local banks is greater.”Standard Chartered’s framework also ranks Egypt, Pakistan, Colombia, Bangladesh, and Sri Lanka among the most exposed to a bank deposit exodus. Countries such as Turkey, India, China, Brazil, South Africa, and Kenya were also listed among the areas most likely to witness a rush to stablecoins.Experts stressed that its vulnerability map serves as a starting point, not the destination. Capital-account openness, remittance dynamics, inflation trajectories, and credibility of monetary frameworks could all influence where each country lands on what the bank calls an “opportunity-risk continuum.”However, the bank’s bottom line is clear: stablecoin demand in EMs has already been meaningful, and a trillion-dollar shift from deposits into tokenized dollars is likely now a base case, not a tail risk.Beyond deposit flight, the report flags pressure on correspondent banking, payments, and FX revenues. These concerns could be partially offset if banks custody reserves for issuers or embed stablecoins into treasury, settlement, and cross-border rails, the analysts said.Authorities are also moving to blunt risk. Many EMs are piloting CBDCs, upgrading “fast payment” infrastructure, and promoting digital literacy as mobile money usage climbs in Sub-Saharan Africa.Still, competitive and technological currents suggest adoption is broadening. Tether has been preparing a U.S.-compliant product (USAT) and expanding rails, while Stripe has unveiled tools to help companies launch their own stablecoins. Builders are pushing further into emerging markets, such as Plasma’s stablecoin-focused L1.Meanwhile, Coinbase’s Jesse Pollak has argued that non-USD stablecoins are needed for real-world utility. His argument suggests that outflows may be distributed across currencies, not just into dollars.The report lands amid a market upswing that pushed the stablecoin sector’s capitalization above $300 billion for the first time, led by Tether USDT and Circle’s USDC.

01 Oct, 2025

Lao Prime Minister Visits US to Strengthen Economic Ties, Seek Tariff Reductions

Prime Minister Sonexay Siphandone concluded a high-level working visit to Washington D.C., United States, from 27 to 30 September, aimed at deepening economic cooperation and pursuing a reduction in tariffs on Lao exports, during which he met with senior US officials, business leaders, and key advocacy groups.Trade Talks on Tariff ReductionsDuring his visit, Prime Minister Sonexay held in-depth discussions with United States Trade Representative Jamieson Greer on advancing ongoing trade negotiations and exploring potential avenues to reduce tariffs. He emphasized Laos’ readiness to further expand trade and investment engagement with the United States, highlighting ongoing domestic efforts to facilitate trade, including potential waivers of import tariffs on US goods, streamlining of non-tariff barriers, and stronger promotion of Lao products abroad. These measures are intended to create a more attractive, transparent environment for bilateral trade, paving the way for deeper economic collaboration.The US Trade Representative welcomed the Prime Minister’s direct engagement, describing the discussions as productive and affirming that the outcomes, particularly on tariff concessions, would be reported to the US President.Background on US-Lao Trade, Investment TiesCurrently, the US imposes a 40 percent reciprocal tariff on imports from Laos, one of the highest rates applied to any trading partner.According to a July report from the National Economic and Social Science Institute, this high tariff reflects the US perception of a trade deficit with Laos. Lao authorities, however, point to a stark discrepancy between the two sides’ trade figures. While US data indicates a 2024 trade deficit of over USD 762 million, Laos’ Ministry of Industry and Commerce reports a modest trade surplus of just over USD 42 million, with Lao exports to the US valued at USD 283.8 million and imports at USD 241.6 million.In addition to official meetings, Prime Minister Sonexay participated in the US-Lao Business Roundtable, where he showcased Laos’ investment potential and outlined government policies to support private sector growth. The Prime Minister encouraged American companies to explore opportunities in Laos, stressing the country’s ongoing reforms to enhance the ease of doing business.Humanitarian Cooperation Supports Economic GrowthBeyond economic discussions, Prime Minister Sonexay met with the advisory committee of Legacies of War, a US-based NGO dedicated to addressing the legacy of unexploded ordnance in Laos.While primarily humanitarian in focus, these discussions also highlighted how removing development barriers, such as UXO contamination, can facilitate greater economic activity in affected areas.Laos and the United States have a long history of cooperation across economic, humanitarian, and development issues, including MIA recovery efforts and UXO clearance programs. The year 2025 marks the 70th anniversary of diplomatic relations between the two nations, while 2026 will celebrate the 10th anniversary of the Comprehensive Partnership, which provides a framework for strengthening ties across economic, political, and people-to-people exchanges.Prime Minister Sonexay’s visit signals a commitment by Laos to resolve trade issues and enhance bilateral economic engagement, with the reduction of tariffs at the forefront of discussions.