News ยท Stablecoins & Payments
Economists report that rising savings rates slowed stablecoin market growth between 2019 and 2025, showing a stronger drag on USDC than Tether.
Key point 1 of 3
01
A BIS working paper found higher bank deposit yields slowed weekly stablecoin growth from 2019 to 2025 .
Key point 2 of 3
02
A 1-basis-point bump in savings rates cut typical 10-week stablecoin market growth from 15% to between 6% and 12% .
Key point 3 of 3
03
The dampening effect on market expansion was stronger for Circle's USDC than for Tether's USDT .
Context
Traditional financial institutions have faced competition from non-interest-bearing digital dollar tokens, raising regulatory questions over issuer yields.
Why it matters
US-facing stablecoin issuers like Circle face greater growth headwinds when commercial deposit rates climb compared to offshore competitors.
What to watch
Federal rulemaking by the OCC, FDIC, and Treasury implementing the GENIUS Act ahead of its effective date in January.
Sources
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