A recent working paper from the Bank for International Settlements sheds light on the impact of deposit rates on the growth of stablecoins. Conducted by economists Iñaki Aldasoro and Rashad Ahmed, the research reveals how banks can leverage their deposit pricing strategies to influence the stablecoin market. The source notes that this dynamic could significantly shape the future of digital currencies.
Study Overview
The study analyzed weekly US data spanning from January 2019 to June 2025, uncovering that a mere one-basis-point increase in deposit rates could slow the growth of stablecoin market capitalization from approximately 15% to around 12%. This finding underscores the significant role that banks play in shaping the dynamics of the stablecoin ecosystem.
Impact on USDC
Particularly noteworthy is the strong correlation observed with USDC, a stablecoin that has a closer connection to US users. The paper emphasizes that banks possess the ability to affect stablecoin adoption rates through strategic adjustments in their deposit rates. This highlights a potential avenue for financial institutions to exert influence over the burgeoning digital currency landscape.
Visa's recent research emphasizes the critical role of trust and fraud protection in stablecoin adoption, contrasting with the findings on deposit rates from the Bank for International Settlements. For more details, see this article.
