BIS Study Links Higher Bank Deposit Rates to Stablecoin Growth Slowdown
A new BIS study reveals a negative correlation between rising bank deposit rates and stablecoin market expansion.
A new BIS study reveals a negative correlation between rising bank deposit rates and stablecoin market expansion. Tether (USDT) is trading at ₹95.02 ($0.999). This is an original Token Times brief based on reporting by Live Bitcoin News, with live market data added, as of Sat, 17 Oct 2026 21:00:01 UTC.
This finding suggests that traditional banking system returns could be a key factor in stablecoin adoption dynamics, potentially influencing the growth trajectory of dollar-backed digital assets.
- BIS study shows 1 basis point rise in US bank deposit rates cuts stablecoin growth by 3% over ten weeks.
- USDC shows higher sensitivity to deposit rate changes compared to USDT.
- Current USDC market cap: $72.66B, USDT: $183.36B.
- Crypto market cap remains at $2.8T amid stable conditions.
- Circle Plans USDC Expansion to 40 Emerging Markets Amid Stablecoin Growth
- BIS Study Links Higher Bank Deposit Rates to Stablecoin Growth Slowdown — this brief
A new working paper from the Bank for International Settlements (BIS) reveals that higher interest rates on US bank deposits are associated with slower growth in the stablecoin market. The study found that a 1 basis point increase in deposit rates correlates with a reduction in stablecoin growth from 15% to 12% over a ten-week period.
The research indicates that 
USDC, issued by Circle, shows a higher sensitivity to changes in bank deposit rates compared to 
Tether's USDT. This suggests that USDC's market dynamics may be more influenced by traditional financial system returns than its larger counterpart.
Market data shows that USDT currently has a circulating supply of $183.36 billion, while USDC's supply stands at $72.66 billion. Despite the study's findings, both stablecoins have shown relative stability in their prices over the past 24 hours and seven days.
The broader crypto market remains flat with a total market cap of $2.8 trillion. 
Bitcoin has seen a modest 0.12% increase in the last 24 hours, while the Fear & Greed Index remains in 'Greed' territory at 55.
This study underscores the potential interplay between traditional finance and the crypto ecosystem. As central banks continue to adjust interest rates, the impact on stablecoin growth could become more pronounced, potentially influencing broader market dynamics.
Since this brief published about 1 hour ago, Tether (USDT) has moved from ₹95.02$0.9991 to ₹95.02$0.999 — -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 ≈ ₹104.15 (about $0.999), down 0.0% over 24 hours. The rupee itself trades about 9.6% 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 17, 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 Links Higher Bank Deposit Rates to Stablecoin Grow — questions & answers
How much does a 1 basis point rate increase affect stablecoin growth?
A 1 basis point rise in US bank deposit rates reduces stablecoin growth by 3% over ten weeks.
Which stablecoin is more sensitive to deposit rate changes?
USDC shows higher sensitivity to deposit rate changes compared to USDT.
What is the current market cap of USDT and USDC?
USDT's market cap is $183.36B, while USDC's is $72.66B.
How much is 1 Tether worth in rupee today?
About ₹104.15 at the live peer-to-peer (P2P) USDT rate, which is what Indians typically trade at — equivalent to roughly $0.999. 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 Live Bitcoin News. 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.