Stablecoin Growth Cooled as Deposit Rates Rose, With USDC Most Exposed, Working Paper Says

When U.S. banks paid savers more, stablecoins grew more slowly, according to a Bank for International Settlements working paper published on Oct. 13. Its authors, Rashad Ahmed of the Andersen Institute for Finance and Economics and Iñaki Aldasoro of the BIS, describe the study as, to their knowledge, “the first empirical evidence” that changes in deposit rates affect stablecoin flows. The paper states the views of its authors, not necessarily those of the BIS or its member central banks. Their bottom line: “The size of the stablecoin sector therefore depends in part on how banks price deposits.” Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . What the Data Show The study covers 339 weeks of U.S.

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