BIS researchers find higher bank deposit rates could cut stablecoin market cap growth over ten weeks from 15% to 12%

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The BIS paper's effect hinges on where issuers hold reserves, as flagged by a December Federal Reserve staff analysis, which found stablecoin money can return to banks as issuer deposits, shifting who supplies funding. Larger, uninsured balances could force banks to hold more liquid assets, crowding out long-term lending, while higher retention rates raise funding costs. Bank of America CEO Brian Moynihan warned in January that up to $6 trillion in deposits could migrate to stablecoins. The authors caution the sample covers one high-rate episode and say banks "retain some influence" via deposit pricing. The paper does not establish actual deposit or lending losses, and findings may shift as yield-bearing stablecoins and tokenized money market funds expand.

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17 Oct 15:17First reportBIS paper finds higher bank deposit rates slow stablecoin growth, especially for USDC9 acc.
18 Oct 01:37Leviathan published this article

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Cited posts

@wublockchain12 吴说区块链First reportOn X ↗
吴说获悉，国际清算银行（BIS）最新工作论文指出，稳定币与银行存款存在明确的资产替代效应：美国周度实证数据显示，银行存款利率每上调 1 个基点，稳定币 10 周累计市值增速将减少约 3 个百分点（工具变量法下放大至约 9 个百分点）；该替代效应在与美国本土联系更紧密的…
@WuBlockchain Wu BlockchainOn X ↗
BIS: Stablecoins and Bank Deposits Act as Substitutes as Deposit Hikes Slow Stablecoin Growth BIS (Bank for International Settlements) working paper finds that stablecoins and bank deposits act as direct portfolio substitutes. Analyzing U.S. data, the authors show that a…
@cryptodotnews crypto.newsOn X ↗
JUST IN: BIS study finds a small bank deposit rate hike can slow stablecoin growth A 0.01 percentage-point increase in U.S. deposit rates was linked to roughly a 3-point drop in stablecoin market-cap growth over 10 weeks, with a stronger effect on $USDC than $USDT, while major…

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@blocknewsdotcom BlockNewsOn X ↗
🚨 HUGE: A Bank for International Settlements study finds that raising U.S. bank deposit rates by just 0.01% could reduce stablecoin market cap growth by roughly 3 percentage points over 10 weeks. 👀 The impact is reportedly stronger for $USDC than $USDT, reflecting USDC’s…
@InvestWithD DianaOn X ↗
🚨BIS OFFICIALLY Releases NEW Report REVEALING Banks Could Be STEALING DEMAND From $USDC & $USDT 🤯🔥 When banks start offering BETTER interest rates, STABLECOINS' growth SLOWS! 😳 👉 $USDC is MORE SENSITIVE to bank interest rates than $USDT! 👉 Meanwhile, $XRP, $BTC & othrr… https://t.co/0eMq9vG0lm
@coinbureau Coin BureauOn X ↗
🚨HUGE: Bank for International Settlements study finds banks can CUT stablecoin growth by 3 points just by raising deposit rates 0.01%. A 1 basis point rise in US deposit rates cuts stablecoin market cap growth by roughly 3 percentage points over 10 weeks, against average growth…

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BIS researchers find higher bank deposit rates could cut stablecoin market cap growth over ten weeks from 15% to 12%

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BIS researchers find higher bank deposit rates could cut stablecoin market cap growth over ten weeks from 15% to 12%

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More on BIS

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BIS chief warns AI capex arms race could create systemic risks as opaque debt fuels spending disconnected from actual profits, echoing past railway and dot-com bubbles

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More on BIS

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“Blockchain consensus mechanisms and fragmentation” by BIS Bulletin No. 126, dated 06 July 2026, on how consensus design drives blockchain fragmentation and the trade-offs between decentralisation, security, and scalability.

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“Blockchain consensus mechanisms and fragmentation” by BIS Bulletin No. 126, dated 06 July 2026, on how consensus design drives blockchain fragmentation and the trade-offs between decentralisation, security, and scalability.

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