Stablecoin Adoption May Impact U.S. Bank Deposits, Jefferies Reports

Jefferies has released a report indicating that the increasing adoption of stablecoins could lead to a reduction in core deposits for U.S. banks by 3–5% over the next five years. According to NS3.AI, this shift is expected to result in higher funding costs, potentially decreasing average bank profits by approximately 3%. The report highlights the growing influence of stablecoins in the financial sector and their potential impact on traditional banking institutions.