SKN | $6 Trillion at Risk: What Stablecoins Could Mean for Global Bank Deposits

Why This Warning Matters to Sophisticated Capital

The warning from Bank of America’s chief executive that as much as $6 trillion in deposits could migrate into stablecoins should not be interpreted as a prediction of immediate disruption. Rather, it is a recognition of a structural shift underway in how clients think about liquidity, access, and control.

For high-net-worth individuals, the issue is not whether stablecoins will replace banks. It is how the availability of digital cash alternatives changes the bargaining power between clients and financial institutions.

Understanding the Deposit-Stablecoin Dynamic

Bank deposits have historically been “sticky.” Convenience, trust, and regulation discouraged movement. Stablecoins alter this equation by offering instant settlement, 24/7 access, and perceived insulation from banking system friction.

As stablecoins mature, they increasingly resemble transactional cash rather than speculative crypto assets. This evolution explains why senior banking executives are now treating them as a competitive liquidity product rather than a niche innovation.

Why Banks Are Paying Attention Now

Deposits represent the foundation of the banking model. They provide low-cost funding and support credit creation. Any sustained outflow, even partial, affects net interest margins, balance-sheet flexibility, and lending capacity.

The concern is not mass withdrawal, but incremental leakage. Even modest shifts by affluent and institutional clients can have an outsized impact given the scale of deposits involved.

What This Means for HNW and Family Office Structures

For HNW investors, stablecoins are not a replacement for private banking relationships. However, they introduce a new layer in liquidity management that cannot be ignored.

Within Swiss custody and cross-border structures, the key considerations include:

• Custody risk: Who controls the asset and under which legal jurisdiction
• Counterparty exposure: The issuer’s reserves, governance, and transparency
• Regulatory clarity: How authorities classify and supervise stablecoin holdings

Used improperly, stablecoins can introduce operational and legal complexity. Used selectively, they may enhance flexibility for specific transactional needs.

How Banks Are Likely to Respond

Rather than resisting change, large banks are already adapting. We are likely to see:

• Greater integration between traditional accounts and digital settlement rails
• Tokenized deposit products designed to retain client liquidity
• Stronger emphasis on relationship value beyond basic cash holding

For sophisticated clients, this competition may ultimately improve service terms and transparency.

The Strategic Bottom Line

The $6 trillion figure should be viewed as a strategic signal, not a forecast. Stablecoins represent optionality, not inevitability.

For high-net-worth investors, the opportunity lies in understanding how digital liquidity tools fit within a broader banking and asset-protection framework. The goal remains unchanged: capital preservation, access, and control.

For a confidential discussion regarding how digital liquidity and traditional banking can coexist within your cross-border wealth structure, contact our senior advisory team.

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