🚨HUGE: A study by the Bank for International Settlements reveals that banks can REDUCE stablecoin growth by 3 percentage points simply by increasing deposit rates by 0.01%.
A 1-basis-point increase in U.S. deposit rates reduces stablecoin market capitalization growth by around 3 percentage points over 10 weeks, compared with average growth of around 15%.
The effect is more pronounced for USDC than for USDT, which the authors attribute to USDC’s closer ties to American savers.
Meanwhile, JPMorgan, BofA and Wells Fargo still pay nothing on $1.6 TRILLION in deposits, according to the FT.$USDC $USDT
A 1-basis-point increase in U.S. deposit rates reduces stablecoin market capitalization growth by around 3 percentage points over 10 weeks, compared with average growth of around 15%.
The effect is more pronounced for USDC than for USDT, which the authors attribute to USDC’s closer ties to American savers.
Meanwhile, JPMorgan, BofA and Wells Fargo still pay nothing on $1.6 TRILLION in deposits, according to the FT.$USDC $USDT