New BIS research suggests that higher U.S. bank deposit rates act as a drag on the stablecoin sector, with a single basis point hike correlating to a 3% drop in ten-week growth.
The BIS working paper establishes a direct inverse correlation between traditional U.S. bank deposit rates and stablecoin expansion. Specifically, the data indicates that even a marginal 1 basis point increase in bank rates results in a significant deceleration of stablecoin growth, reducing the ten-week growth rate from 15% to 12%.
According to the BIS, a 1 basis point rise in bank deposit rates is associated with a 3 percentage point drop in ten-week stablecoin growth.
A new Bank for International Settlements working paper reveals a direct correlation between rising U.S. bank deposit rates and decelerating stablecoin expansion. The data indicates that even minor rate increases can dampen sector growth, reducing ten-week expansion rates from 15% to 12%.
The BIS paper suggests that as bank deposit rates rise, stablecoins become less attractive, leading to a measurable slowdown in their growth trajectory.