🛸 CASE FILE #275
Banks May Have Found a Way to Slow Stablecoin Growth. Just 0.01%.
A Bank for International Settlements study suggests that raising U.S. deposit rates by just 1 basis point (0.01 percentage points) could reduce stablecoin market cap growth by roughly 3 percentage points over 10 weeks.
The effect appears stronger for USDC than USDT.
Meanwhile, JPMorgan, Bank of America and Wells Fargo reportedly pay ZERO interest on $1.6 TRILLION in deposits.
The twist? Banks may not need to fight stablecoins with regulation. They could compete simply by paying depositors more.
Banks May Have Found a Way to Slow Stablecoin Growth. Just 0.01%.
A Bank for International Settlements study suggests that raising U.S. deposit rates by just 1 basis point (0.01 percentage points) could reduce stablecoin market cap growth by roughly 3 percentage points over 10 weeks.
The effect appears stronger for USDC than USDT.
Meanwhile, JPMorgan, Bank of America and Wells Fargo reportedly pay ZERO interest on $1.6 TRILLION in deposits.
The twist? Banks may not need to fight stablecoins with regulation. They could compete simply by paying depositors more.