U.S. Bank Deposit Rates Impact Stablecoin Growth, BIS Paper Reveals
- A rise of just 1 basis point in U.S. bank deposit rates is linked to a slowdown in stablecoin growth.
- Ten-week growth in stablecoins decreased from 15% to 12% following the rate increase.
- The findings are published in a working paper by the Bank for International Settlements (BIS).
The research highlights how even minor adjustments in traditional banking rates can significantly influence the stablecoin market dynamics, demonstrating the interconnectedness of banking and cryptocurrency sectors.
This analysis reveals that a small increase in deposit rates can lead to notable changes, such as a reduction in stablecoin growth from an initial rate of 15% to just 12%. (Source)
