A new study by the Bank for International Settlements (BIS) suggests that banks may have a significant influence on the adoption of stablecoins. The research, which analyzed U.S. data from 2019 to 2025, found that higher bank deposit rates correlate with slower growth in the stablecoin market.
The effect was particularly noticeable for Circle’s USDC, which saw a more pronounced slowdown compared to Tether’s USDT. The authors attributed this to USDC’s stronger ties to U.S. users. The study estimated that a one-basis-point increase in deposit rates reduced stablecoin market capitalization growth from about 15% to roughly 12% under baseline estimates, and to about 6% under a more rigorous method.
The authors emphasized that banks could use deposit pricing as a tool to counter stablecoin adoption. They also suggested that regulators should consider whether stablecoin issuers should be allowed to offer yield to holders, as well as the implications of requiring issuers to hold reserves in bank deposits.
The findings come amid ongoing regulatory debates in Washington. Banks have been lobbying to prevent stablecoin issuers from offering yield, a topic that surfaced during the failed Senate vote on the Clarity Act. Meanwhile, the OCC, FDIC, and Treasury are working on rules to implement the GENIUS Act, which legalized stablecoins in the U.S. and established guidelines for their issuance and use.