BIS Study: Higher Bank Interest Rates Could Curb Stablecoin Growth
A BIS working paper suggests that modest increases in bank deposit rates could slow the adoption of stablecoins.
A BIS working paper suggests that modest increases in bank deposit rates could slow the adoption of stablecoins. Tether (USDT) is trading at $0.9991. This is an original TLT brief based on reporting by Cointribune, with live market data added, as of Sun, 18 Oct 2026 09:00:04 UTC.
This development highlights the competitive dynamics between traditional banking and stablecoins, with potential implications for the future of digital asset adoption and the broader financial ecosystem.
- BIS study shows 1 basis point rise in bank rates could reduce stablecoin growth by 3 percentage points over ten weeks.
- USDC appears more sensitive to bank competition than USDT according to the research.
- USDT market cap ($183.5B) remains more than double that of USDC ($72.36B).
- 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 even small increases in bank deposit interest rates could significantly impact the growth of stablecoins. According to the research, a 1 basis point rise in U.S. bank deposit rates could reduce stablecoin growth from 15% to 12% over a ten-week period.
The study highlights a competitive relationship between traditional banking products and stablecoins, which are digital assets pegged to fiat currencies. This finding underscores the ongoing interplay between decentralized finance and traditional financial systems.
Multiple outlets, including CoinDesk and Cointribune, corroborate the core findings of the BIS study, though they differ in their emphasis. While CoinDesk focuses on the specific numerical impact of the rate increase, Cointribune emphasizes that the effect varies among different stablecoins, with 
USDC being more sensitive to bank competition than USDT.
The circulating supply of USDT is currently $183.41 billion, more than double USDC's $72.62 billion, according to DeFiLlama. Despite the potential impact of bank competition, USDT's market cap remains robust, reflecting its dominant position in the stablecoin market.
In the broader market context, the total crypto market cap stands at $2.8 trillion, with 
Bitcoin showing minimal movement over the past 24 hours (-0.05%). The Fear & Greed Index remains at 53, indicating a neutral market sentiment.
Since this brief published about 2 hours ago, Tether (USDT) has moved from $0.9991 to $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 TLT'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 ≈ ₦1,360.81 (about $0.9991), up 0.0% over 24 hours. The naira itself trades about 2.2% above the official rate on the P2P market, so a Nigerian 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.
TLT 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 over ten weeks.
Which stablecoin is more affected by 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 $183.5 billion, while USDC's is $72.36 billion.
How much is 1 Tether worth in naira today?
About ₦1,360.81 at the live peer-to-peer (P2P) USDT rate, which is what Nigerians typically trade at — equivalent to roughly $0.9991. The naira price moves with both USDT's US-dollar price and the USDT/NGN rate; use our Tether in naira page for any amount.
Which outlets reported this story?
This is an original TLT 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 TLT 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.