BIS working paper: A 1-basis-point rise in US bank deposit rates reduces stablecoin 10-week growth to about 12%

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A BIS working paper finds that for every 1-basis-point increase in US bank deposit rates, the average 10-week stablecoin growth rate falls from about 15% to about 12%. Another method used to identify causality estimates that the growth rate could fall to about 6%; USDC’s growth rate declines by about 4.8 percentage points, while USDT’s declines by about 1.9 percentage points. The study uses weekly US data from January 2019 to June 2025 and recommends that regulators pay attention to whether stablecoin issuers pay yield to holders and whether they require part of reserves to be held in bank deposits.