Stablecoin Growth Cooled as Deposit Rates Rose, With USDC Most Exposed, Working Paper Says
Photo: Unchained
Using six years of weekly U.S. data, two economists found stablecoins grew more slowly after banks raised deposit rates, while cautioning that their evidence covers a single high-rate period. When U.S. banks paid savers more, stablecoins grew more slowly, according to a Bank for International Settlements working paper published on Oct. 13. Its authors, Rashad Ahmed of the Andersen Institute for Finance and Economics and Iñaki Aldasoro of the BIS, describe the study as, to their knowledge, “the first empirical evidence” that changes in deposit rates affect stablecoin flows.
Source: Unchained
