A working paper published by the Bank for International Settlements found that higher U.S. bank deposit rates predict slower stablecoin market growth. According to NS3.AI, the study used weekly U.S. data from January 2019 through June 2025 and estimated that a one-basis-point rise in deposit rates reduced stablecoin growth over 10 weeks from about 15% to roughly 12%, or about 6% using a second method. The effect was stronger for Circle’s USDC than for Tether’s USDT. The sample covered one high-rate cycle, during which stablecoins paid holders no interest. The authors said regulators should consider whether stablecoin issuers may pay yield to holders.