WORLDTECHBIS paper finds banks could slow stablecoin growth by raising rates
What happened
A BIS working paper found a 1 basis point rise in U.S. The study suggests the two products compete for the same pool of money.
The authors conclude that reserve-backed stablecoins (a digital token meant to hold a fixed value, usually one dollar) act as partial substitutes for traditional bank deposits.
bank deposit rates predicted slower stablecoin growth, cutting ten-week growth from 15% to 12%. 17, 2026 Banks have a weapon against stablecoins, and it isn’t a lobbying budget.
It’s the interest rate on your savings account. A new working paper from the Bank for International Settlements (BIS) finds that when banks pay savers more, stablecoin growth slows.
It was published as BIS Working Paper 1382 on October 13, 2026, and written by Rashad Ahmed and Iñaki Aldasoro. Their answer to the title question is a qualified yes.
To get there, they worked through weekly US data running from January 2019 through June 2025. That window covers a dramatic stretch for the sector: stablecoin market capitalization climbed from less than $5 billion to more than $220 billion.