According to Decrypt, a working paper from the Bank for International Settlements (BIS) indicates that growth in stablecoin usage slows when U.S. banks increase deposit rates. The research highlights sensitivity among certain issuers, naming Circle’s USDC as most affected by such rate adjustments. The BIS economists observed this correlation during periods of elevated deposit rates set by U.S. financial institutions. No specific timelines or quantitative thresholds were provided in the summary. The finding reflects how changes in traditional banking conditions can influence demand for stablecoins, particularly those tied to regulated payment infrastructure. The paper does not assess policy impacts, market competition, or regulatory responses. It focuses solely on observed associations between U.S. bank deposit rate movements and stablecoin growth trends as identified through the working paper.
