Update
Banks Could Slow Stablecoin Growth with Higher Interest Rates
A new BIS working paper suggests that higher interest rates on bank deposits could slow the growth of stablecoins. The study, titled 'Are stablecoins and bank deposits substitutes?', found that a 1 basis point increase in bank deposit rates is associated with about 3 percentage points less stablecoin market cap growth over a 10-week period. The research, written by Rashad Ahmed and Iñaki Aldasoro, analyzed data from January 2019 to June 2025, showing that stablecoin market capitalization grew from less than $5 billion to over $220 billion during that time.