Report: Banks See Yield-Bearing Stablecoins as a Threat to Deposits

A June 1 post by analyst EGRAG CRYPTO argues banks are pushing back against stablecoins because they let users hold and move dollar value outside bank deposits, with the potential to earn yield. He said banks can lend deposits at 6% to 28% while paying depositors 0.1% to 0.5%, a spread he believes yield-bearing stablecoins could erode. Separate estimates cited in the report project U.S. banks could lose around $500 billion in deposits to stablecoins by end-2028 as the sector grows to about $320 billion.