BIS Study Links Higher Bank Deposit Rates to Stablecoin Growth Slowdown
A new BIS study reveals that rising US bank deposit rates significantly impact stablecoin market expansion.
A new BIS study reveals that rising US bank deposit rates significantly impact stablecoin market expansion. Tether (USDT) is trading at $0.9991. This is an original TLT brief based on reporting by Live Bitcoin News, with live market data added, as of Sat, 17 Oct 2026 23:15:02 UTC.
This finding suggests that traditional banking system returns could be a key factor in stablecoin adoption dynamics, potentially influencing the broader crypto market and regulatory considerations.
- BIS study: 1 basis point rise in US bank deposit rates cuts stablecoin growth by 3 percentage points.
- USDC shows higher sensitivity to deposit rate changes than USDT.
- USDT market cap ($183.37B) remains 2.5x larger than USDC ($72.64B).
A new working paper from the Bank for International Settlements (BIS) has found that higher US bank deposit rates are associated with slower growth in the stablecoin market. The study indicates that as traditional banking systems offer more attractive returns, the demand for dollar-backed digital tokens decreases.
According to the research, a 1 basis point increase in US bank deposit rates leads to a 3 percentage point reduction in stablecoin growth over a ten-week period. This suggests that stablecoins, which are often seen as a bridge between traditional finance and crypto, are sensitive to the competitive landscape of interest rates.
The study also reveals that different stablecoins respond differently to these rate changes. Circle's 
USDC shows a higher sensitivity to deposit rate fluctuations compared to 
Tether's USDT. This disparity could be attributed to the varying reserve compositions and regulatory statuses of the two stablecoins.
As of the latest data, Tether's USDT has a circulating supply of $183.37 billion, while USDC's supply stands at $72.64 billion. Despite the growth slowdown, USDT maintains a significant market cap lead over USDC.
In the broader market context, the total crypto market cap remains at $2.79 trillion, with 
Bitcoin showing a slight 24-hour decline of 0.64%. The Fear & Greed Index currently sits at 55, indicating a state of 'Greed' among investors.
Since this brief published about 4 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 ≈ ₦1,363.64 (about $0.9991), down 0.0% over 24 hours. The naira itself trades about 2.4% 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 17, 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 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 percentage points 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 difference between USDT and USDC?
USDT's market cap ($183.37B) is 2.5 times larger than USDC's ($72.64B).
How much is 1 Tether worth in naira today?
About ₦1,363.64 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 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 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.