BIS Paper Finds Banks Could Slow Stablecoin Growth with Higher Deposit Rates

Banks could slow the growth of major stablecoins like USDC and USDT by offering higher interest rates to savers, according to a working paper published by the Bank for International Settlements (BIS).

Researchers Rashad Ahmed and Iñaki Aldasoro analyzed weekly data from January 2019 to June 2025. They found that a 1 basis point increase in U.S. bank deposit rates predicted slower stablecoin growth, reducing the ten-week growth rate from 15% to 12%.

The effect was more pronounced for Circle’s USDC than for Tether’s USDT. The authors suggested this difference may be linked to USDC’s closer ties to U.S. users and its perceived regulatory profile compared to Tether.

The paper indicates that traditional banks retain some influence over stablecoin adoption through their deposit pricing strategies. However, the authors noted their sample covers only one period of high interest rates, and the long-term dynamics may evolve as stablecoin markets mature.