BIS Study: Stablecoin Growth Slows When Banks Raise Deposit Rates
A BIS working paper reveals that U.S. bank deposit rates inversely impact stablecoin adoption, particularly affecting USDC.
A BIS working paper reveals that U.S. bank deposit rates inversely impact stablecoin adoption, particularly affecting USDC. USDC (USDC) is trading at $0.9997. This is an original TLT brief based on reporting by Decrypt, with live market data added, as of Sun, 18 Oct 2026 14:00:04 UTC.
This highlights the ongoing competition between traditional banking systems and stablecoins, suggesting that monetary policy decisions could significantly influence crypto market dynamics.
- BIS study shows stablecoin growth inversely correlates with U.S. bank deposit rates.
- USDC is most sensitive to bank rate changes among major stablecoins.
- Current USDC market cap at $72.34B, slightly below circulating supply of $72.61B.
- BIS Study Links Higher Bank Deposit Rates to Stablecoin Growth Slowdown
- BIS Study: Higher Bank Interest Rates Could Curb Stablecoin Growth
- BIS Study: Stablecoin Growth Slows When Banks Raise Deposit Rates — this brief
A recent working paper from the Bank for International Settlements (BIS) has shed light on the relationship between traditional banking systems and stablecoin adoption. The study indicates that when U.S. banks increase their deposit rates, the growth of stablecoins tends to slow down.
Among the major stablecoins, 
USDC appears to be the most affected by these rate changes. This sensitivity could be attributed to USDC's close ties to the U.S. financial system and its regulatory compliance measures.
The findings are particularly relevant given the current market context, where USDC has a circulating supply of $72.61 billion, according to DeFiLlama, and a market cap of $72.34 billion. Despite the slight discrepancy, these figures underscore the significant role USDC plays in the stablecoin market.
The broader crypto market remains relatively stable, with a total market cap of $2.81 trillion. 
Bitcoin has seen a modest 24-hour increase of 0.53%, while the overall Fear & Greed index stands at 53, indicating a neutral sentiment.
This study suggests that monetary policy decisions, such as changes in bank deposit rates, could have a tangible impact on the adoption and growth of stablecoins. As the crypto market continues to evolve, the interplay between traditional finance and digital assets will likely remain a key area of focus.
Since this brief published about 60 minutes ago, USDC (USDC) has moved from $0.9997 to $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 TLT's market data (daily resolution; intraday detail builds over the first day). 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 ≈ ₦1,363.89 (about $0.9997), up 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 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.
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: Stablecoin Growth Slows When Banks Raise Deposit — questions & answers
How does USDC compare to other stablecoins in terms of sensitivity to bank rates?
USDC is identified as the most sensitive to U.S. bank deposit rate changes among major stablecoins.
What is the current market cap of USDC?
USDC has a market cap of $72.34 billion, with a circulating supply of $72.61 billion.
Why does the BIS study matter for the crypto market?
It shows how traditional banking policies can influence stablecoin adoption, highlighting the interconnectedness of both financial systems.
How much is 1 USDC worth in naira today?
About ₦1,363.89 at the live peer-to-peer (P2P) USDT rate, which is what Nigerians typically trade at — equivalent to roughly $0.9997. The naira price moves with both USDC's US-dollar price and the USDT/NGN rate; use our USDC in naira page for any amount.
Which outlets reported this story?
This is an original TLT brief that synthesises reporting from Decrypt. 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.