BIS study finds higher bank deposit rates slow stablecoin uptake
Higher deposit rates at U.S. banks appear to curb stablecoin adoption, with Circle's USDC the most sensitive, according to a working paper.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
This story is no longer being updated. It reflects reporting up to .
What happened
Economists at the BIS concluded that when American banks lift the interest they pay on deposits, stablecoin expansion decelerates. Circle's USDC showed the strongest response to those rate changes. A follow-up analysis framed the finding as a sign that traditional banks keep some leverage over where idle cash sits.
Why it matters
The findings suggest banks can win back some cash that stablecoins were expected to pull away. That shift could affect which financial firms capture fees from customer cash.
Coverage
- BIS links higher deposit rates to slower stablecoin growth (dig.watch)
- Stablecoin Pressure Puts Bank7 Stock And Regional Bank Deposits In Focus (Simply Wall St)
- Banks Hold a Lever Over Stablecoin Adoption, BIS Economists Say (decrypt.co)
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