5 hours ago
5
Key Takeaways
- Higher deposit rates predicted slower stablecoin growth.
- Banks reprice faster above 3% policy rates.
- DeFi yields didn’t shield stablecoins.
- Who may pay stablecoin holders is unsettled.
BIS Working Paper 1382, published on October 13, is by Rashad Ahmed of the Andersen Institute for Finance and Economics and Iñaki Aldasoro of the BIS, and it says its views aren’t the BIS’s. It uses weekly US data from January 2019 to June 2025, a stretch in which stablecoin market capitalisation grew from under $5 billion to more than $220 billion.
What the paper found
Against average ten-week stablecoin growth of 15%, a one-basis-point rise in the national average of six non-maturity deposit rates in a single week predicts about 3 points less growth, taking it to roughly 12%. The authors argue that figure is biased toward zero, because banks raise rates when stablecoins pull funds away. Correcting...
English (US)