Crypto exchange Coinbase has pushed back against claims that the rise of stablecoins could drain deposits from US banks or undermine traditional lending.
“Most stablecoin demand comes from outside the US, expanding dollar dominance globally, not competing with your local bank,” Shirzad said, adding that concerns echo misplaced fears raised during earlier financial innovations such as money market funds.
In countries facing currency depreciation or limited access to banking, dollar-pegged stablecoins serve as a lifeline for the underbanked, providing stability and a bridge to global commerce. “They are the transactional plumbing of a new financial layer that runs parallel to, but largely outside, the domestic banking system,” the firm said.
According to Coinbase, the majority of stablecoin users are international investors seeking access to the US dollar, not domestic savers.
The company said US policymakers should see stablecoins as a strategic tool for dollar expansion, not as a risk to community banks or deposits. “Community banks and stablecoin holders barely overlap,” Shirzad said. “In fact, banks could improve their services with stablecoins.”
Shirzad emphasized that treating stablecoins as a threat “misreads the moment,” arguing that they reinforce the dollar’s international role rather than compete with it.
The firm argues that, if anything, stablecoins will extend US monetary influence while giving American financial firms a competitive edge in the digital asset economy. The defense comes as more banks explore stablecoin products following the passage of the GENIUS Act, the US regulatory framework governing stablecoin issuers and payment systems.
Even if global stablecoin circulation reached $5 trillion, Coinbase estimates the majority would sit outside the US, with little effect on domestic deposits, which currently exceed $18 trillion.