What the researchers tested
A Bank for International Settlements working paper published on 13 October examines whether reserve-backed stablecoins compete with bank deposits for users’ funds. The authors used weekly US data from January 2019 through June 2025 and controlled for broader interest rates, Treasury yields, exchange rates, bitcoin prices, market volatility and other crypto-market developments.
What the paper found
The study reports that higher bank deposit rates were followed by slower stablecoin growth, with a stronger relationship for USDC than USDT. The pattern was not found for non-stablecoin cryptoassets. The authors describe stablecoins and deposits as partial substitutes and say deposit pricing may influence stablecoin-sector growth. They also caution that the analysis does not establish that stablecoin growth necessarily reduces aggregate bank deposits or lending, and the paper represents its authors rather than an official BIS policy position.
What it means for merchants
Merchants holding stablecoins for settlement should compare yield, liquidity, redemption access and counterparty exposure with insured or safeguarded bank balances. Treasury policy should define when token balances are converted rather than leaving that choice to short-term market conditions.
Read the original announcement
Bank for International Settlements · 13 Oct 2026This brief summarizes the linked primary source. Claims and reported figures have not been independently audited by Payment Guide.