BIS Paper Links Higher Deposit Rates to Slower Stablecoin Growth, USDC More Sensitive

TREE NEWS reports: A Bank for International Settlements working paper found that rising U.S. bank deposit rates are associated with slower stablecoin market-cap growth. Using weekly U.S. data from January 2019 to June 2025 and controlling for bitcoin prices, Treasury yields and financial conditions, the authors estimate that a 1-basis-point weekly rise in the average deposit rate corresponds to roughly a 3-percentage-point reduction in cumulative stablecoin growth over the following ten weeks, to about 12% from a 15% average. USDC reacted more strongly than USDT. The views are the authors’ and not necessarily those of the BIS or its member central banks.