Jefferies: Stablecoins unlikely to trigger bank runs but may hurt profits

U.S. investment bank Jefferies said in a report that while stablecoins are unlikely to trigger a sudden withdrawal of U.S. bank deposits, the spread of digital dollars could become a persistent drag on bank profits. According to CoinDesk, Jefferies estimates that stablecoin adoption could reduce core bank deposits by 3-5% over the next five years. This would likely increase funding costs and worsen bank profitability, with the report estimating an average reduction in bank profits of about 3%.