According to the source, analysts predict stablecoins could drain up to 1 trillion dollars from emerging-market bank deposits within three years as depositors prioritize capital preservation over yield, source: the provided source. For trading, this scenario implies rising demand for USDT and USDC liquidity and potential shifts in market depth and pricing across stablecoin pairs on major exchanges during EM trading hours, based on the source. Traders should track aggregate stablecoin market-cap growth and net issuance, especially for USDT and USDC, as high-frequency proxies to gauge whether the forecasted deposit migration is materializing, based on the source.

According to @business, crypto and banking advocates are clashing over whether policymakers should distinguish between allowing stablecoins to offer rewards for payments and permitting them to attract deposits away from traditional banks (source: Bloomberg/@business, Oct 2, 2025). According to @business, the dispute is framed as a renewed rift with banks over deposits and centers on how payment incentives are treated versus deposit-like offerings in prospective rules (source: Bloomberg/@business).

According to Nic Carter, government actions in the EU and US are perceived to protect commercial banks by restricting stablecoins. In the EU, stablecoins face de facto bans, while in the US, the prohibition of interest on stablecoins diminishes their appeal. These measures may accelerate the movement of funds out of traditional bank deposits, potentially affecting liquidity and customer retention in the banking sector. This trend could lead to increased volatility in both the banking and cryptocurrency markets, as capital shifts in response to regulatory environments (Source: Nic Carter via Twitter).