BIS: Rising Bank Deposit Rates Slow Stablecoin Growth
A BIS study reveals that stablecoin adoption, particularly for USDC, is inversely linked to U.S. bank deposit rates.
A BIS study reveals that stablecoin adoption, particularly for USDC, is inversely linked to U.S. bank deposit rates. USDC (USDC) is trading at ₹95.04 ($0.9997). This is an original Token Times brief synthesising 2 outlets (Decrypt, CoinDesk), plus live market data, as of Sun, 18 Oct 2026 15:15:01 UTC.
This finding highlights the competition between traditional banking systems and stablecoins, suggesting that higher bank returns could deter users from adopting digital dollar alternatives.
- BIS study shows stablecoin growth declines when U.S. banks raise deposit rates.
- USDC is most sensitive to bank rate changes among major stablecoins.
- USDC market cap stands at $72.34B amid the study's release.
The Bank for International Settlements (BIS) working paper, reported by Decrypt, concludes that stablecoin growth slows when U.S. banks increase deposit rates. The study specifically identifies Circle’s USDC as the most sensitive to these rate changes. No other outlets have corroborated this specific study, but the findings align with broader narratives about competition between traditional finance and stablecoins.
- Circle Plans USDC Expansion to 40 Emerging Markets Amid Stablecoin Growth
- BIS Study Links Higher Bank Deposit Rates to Stablecoin Growth Slowdown
- BIS Study: Higher Bank Interest Rates Could Curb Stablecoin Growth
- BIS: Rising Bank Deposit Rates Slow Stablecoin Growth — this brief
A recent working paper from the Bank for International Settlements (BIS) indicates that stablecoin adoption is inversely related to the interest rates offered by U.S. banks. The study suggests that as banks raise deposit rates, the growth of stablecoins, which are designed to maintain a stable value relative to traditional currencies, tends to decelerate.
Among the major stablecoins, Circle’s 
USDC was found to be the most sensitive to changes in bank deposit rates. This sensitivity underscores the competitive dynamics between traditional banking services and digital dollar alternatives. The study's findings imply that higher returns in the traditional banking system could make stablecoins less attractive to users.
The BIS report comes at a time when the total crypto market cap is around $2.81 trillion, with 
Bitcoin showing a modest 24-hour gain of 0.53%. The overall market sentiment, as measured by the Fear & Greed Index, remains in the 'Neutral' range at 53. Meanwhile, USDC's circulating supply is $72.61 billion, according to DeFiLlama, with its market cap at $72.34 billion, showing a slight 24-hour increase of 0.01%.
The study's emphasis on the relationship between bank rates and stablecoin growth provides insight into the factors influencing the adoption of digital currencies. It suggests that while stablecoins offer certain advantages, such as faster and cheaper transactions, they still face stiff competition from traditional financial instruments that can offer competitive returns.
The findings may prompt stablecoin issuers to innovate further or explore new strategies to maintain and attract users in a changing interest rate environment. As the crypto market continues to evolve, the interplay between traditional finance and digital currencies will likely remain a key area of focus.
Since this brief published about 2 hours ago, USDC (USDC) has moved from ₹95.05$0.9997 to ₹95.04$0.9997 — -0.00%.
The chart plots USDC's price: grey is the move before this brief published, the vertical dashed line marks the moment it published, the horizontal dashed line is the price then, and the coloured area is the move since — from Token Times's market data (daily resolution). It shows what happened after the news, not that the news caused it; many factors move prices. Not financial advice.
At today's peer-to-peer rate, 1 USDC ≈ ₹105.56 (about $0.9997), up 0.0% over 24 hours. The rupee itself trades about 11.1% above the official rate on the P2P market, so a Indian buyer's effective cost differs from the headline dollar price.
Live market data
Current prices for the asset in this story — live, source-stamped, updated every 15 minutes.
Figures and sectors in this story, checked live against on-chain aggregators · October 18, 2026.
Token Times reads these figures directly from on-chain aggregators (DeFiLlama, mempool.space) at build time — independent of what any outlet reported. Sector totals aggregate every protocol DeFiLlama tracks in that category. Values are live and will change.
BIS: Rising Bank Deposit Rates Slow Stablecoin Growth — questions & answers
How does USDC react to bank deposit rate changes?
USDC is the most sensitive to U.S. bank deposit rate changes among major stablecoins, per the BIS study.
What is the current USDC market cap?
USDC's market cap is $72.34 billion, with a circulating supply of $72.61 billion.
Why does this BIS study matter for crypto?
It reveals the influence of traditional finance on stablecoin adoption, highlighting the competitive dynamics at play.
How much is 1 USDC worth in rupee today?
About ₹105.56 at the live peer-to-peer (P2P) USDT rate, which is what Indians typically trade at — equivalent to roughly $0.9997. The rupee price moves with both USDC's US-dollar price and the USDT/INR rate; use our USDC in rupee page for any amount.
Which outlets reported this story?
This is an original Token Times brief that synthesises reporting from Decrypt, CoinDesk, with the key figures cross-checked for agreement across them. It is not a copy of any one article — follow the source links above for the original reporting.
Original summary — not financial advice. This is an original Token Times brief that summarises a development reported elsewhere and adds live market data for context; it is not the original article and reproduces no part of it. Follow the source link above for full details. Crypto is volatile and high-risk — always do your own research.