BIS Study: Higher Bank Interest Rates Could Curb Stablecoin Growth
A BIS working paper suggests that small increases in bank deposit rates could significantly impact stablecoin adoption.
A BIS working paper suggests that small increases in bank deposit rates could significantly impact stablecoin adoption. Tether (USDT) is trading at ₹94.99 ($0.9991). This is an original Token Times brief based on reporting by Cointribune, with live market data added, as of Sun, 18 Oct 2026 09:00:02 UTC.
This finding highlights the competitive dynamics between traditional banking products and stablecoins, suggesting that traditional financial institutions could leverage interest rates to maintain their market position against crypto alternatives.
- BIS study shows 1 basis point rise in bank rates could reduce stablecoin growth by 3 percentage points.
- USDC appears more sensitive to bank competition than USDT.
- USDT market cap ($183.41B) remains more than double USDC's ($72.62B).
- 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 — this brief
A recent study by the Bank for International Settlements (BIS) suggests that traditional banks could slow the growth of stablecoins by offering slightly higher interest rates on deposits. The research indicates that even a minor increase in bank rates could significantly impact the adoption of stablecoins, which are cryptocurrencies pegged to traditional currencies.
According to the BIS working paper, a 1 basis point rise in U.S. bank deposit rates could reduce the ten-week growth rate of stablecoins from 15% to 12%. This finding underscores the competitive relationship between traditional banking products and stablecoins, suggesting that banks could use interest rates as a tool to maintain their market position.
The study also highlights differences in the sensitivity of various stablecoins to bank competition. Multiple outlets report that Circle's 
USDC appears more affected by bank rate changes than 
Tether's USDT. This difference may be attributed to the varying strategies and market positions of the issuers.
As of the latest data, Tether (USDT) has a circulating supply of $183.41 billion, while USD Coin (USDC) has a circulating supply of $72.62 billion. Despite the potential impact of bank competition, USDT's market cap remains more than double that of USDC, indicating its dominant position in the stablecoin market.
In the broader crypto market context, the total market cap stands at $2.8 trillion, with 
Bitcoin showing a slight 24-hour decline of 0.06%. The Fear & Greed Index is at 53, indicating a neutral market sentiment. The stablecoin market, particularly USDT and USDC, has remained relatively stable, with both coins showing minor 24-hour increases.
Since this brief published about 2 hours ago, Tether (USDT) has moved from ₹94.99$0.9991 to ₹94.99$0.9991 — -0.00%.
The chart plots USDT'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 USDT ≈ ₹103.85 (about $0.9991), up 0.0% over 24 hours. The rupee itself trades about 9.3% 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 assets 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 Study: Higher Bank Interest Rates Could Curb Stablecoin — questions & answers
How much would bank rates need to increase to impact stablecoin growth?
A 1 basis point rise in U.S. bank deposit rates could reduce stablecoin growth by 3 percentage points.
Which stablecoin is more sensitive to bank competition?
USDC appears more sensitive to bank competition than USDT, according to the BIS study.
What is the current market cap of USDT and USDC?
USDT's market cap is $183.41 billion, while USDC's is $72.62 billion.
How much is 1 Tether worth in rupee today?
About ₹103.85 at the live peer-to-peer (P2P) USDT rate, which is what Indians typically trade at — equivalent to roughly $0.9991. The rupee price moves with both USDT's US-dollar price and the USDT/INR rate; use our Tether in rupee page for any amount.
Which outlets reported this story?
This is an original Token Times brief that synthesises reporting from Cointribune. 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.