US deposit rates choke USDC adoption, and a BIS model reveals why

A study released by the Bank for International Settlements on Oct. 13 links bank deposit repricing to a larger estimated slowdown in USDC growth than in USDT growth, so banks' offers can shape stablecoin adoption differently for each issuer. Higher deposit rates give holders a stronger financial reason to keep balances at a bank. In the study, a one-basis-point deposit-rate increase was associated with about 4.8% less cumulative USDC growth over ten weeks, compared with 1.9% less growth for USDT. Researchers Rashad Ahmed and Iñaki Aldasoro used weekly data from January 2019 through June 2025.

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