A study by the Bank for International Settlements published October 13 links bank deposit repricing to a larger estimated slowdown in USDC growth than in USDT growth. A one-basis-point deposit-rate increase was associated with about 4.8% less cumulative USDC growth over ten weeks, compared with 1.9% less growth for USDT. Researchers Rashad Ahmed and Iñaki Aldasoro attribute USDC’s larger response to its closer connections to US institutional and decentralized finance users, while associating USDT’s weaker response with its offshore and developing-economy uses. The study cannot identify which individual holders switched or which bank accounts were involved, and it does not establish losses of aggregate bank deposits or lending.
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