A Bank for International Settlements working paper using weekly U.S. data from January 2019 through June 2025 found that stablecoin growth slows when banks raise deposit rates. Stablecoin market capitalization grew by about 15% over a typical 10-week span, but a one-basis-point increase in deposit rates cut that to roughly 12% under the baseline estimate and about 6% under a second method designed to isolate cause and effect. The link was stronger for Circle’s USDC than for Tether’s USDT, which the authors attribute to USDC’s closer ties to U.S. users. The authors recommended that regulators weigh whether stablecoin issuers may pay yield to holders, as banks retain influence over the pace of adoption through deposit pricing.
Source: Read the original article
