Update
USDC Growth Sensitivity to Deposit Rates
A BIS working paper using 2019-2025 data suggests USDC growth is more sensitive to US bank deposit repricing compared to USDT. The study, released on October 13, indicates a one-basis-point deposit-rate increase was associated with about 4.8% less cumulative USDC growth over ten weeks, compared to 1.9% less for USDT. Exchange rewards complicate adoption forecasts, as they add another price to the competition for balances.