INSTITUTIONAL | Banks Could Curb Stablecoin Growth by Raising Deposit Interest Rates, Reveals BIS Paper
Banks could slow the growth of stablecoins such as Tether’s USDT and Circle’s USDC by offering savers higher interest rates according to an October 2026 working paper by the Bank for International Settlements (BIS). Researchers Rashad Ahmed and Iñaki Aldasoro analysed U.S. data from January 2019 to June 2025 finding that a one-basis-point increase in bank deposit rates was associated with a decline in average stablecoin market capitalisation growth over 10 weeks from about 15% to 12%. The […]
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- 2026-10-19 18:42 UTC
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- 2026-10-19 18:43 UTC
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- INSTITUTIONAL | Banks Could Curb Stablecoin Growth by Raising Deposit Interest Rates, Reveals BIS Paper
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Reviewed BitKE reporting on Payments matters for Stablecoin payments readers.
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BitKE reported the item at 2026-10-19T06:00:44.000Z.
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