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RePEcCrypto & DeFi

Are stablecoins and bank deposits substitutes?

Stablecoin growth slows roughly 3.75 percentage points per standard-deviation rise in deposit rates, with effects three times larger using instrumental variables and stronger for USDC than USDT.

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Featured in No. 137 on 30 Oct 2026 · 4 days after release

OLS and IV estimates of stablecoin growth response to deposit rate increases over time.
Figure 6: OLS (left) and IV (right) estimates plotted against average cumulative sta- blecoin growth (dashed line). The solid line and shaded bands show the implied growth path after a 1 basis point deposit rate increase. Darker and lighter shaded regions correspond to 68% and 95% Newey-West confid…
Released
26 Oct 2026
First featured
No. 137 · 30 Oct 2026
Published in
Not yet, as far as Semantic Scholar knows
Fanfare
3 of 5
Identifier
RePEc:bis:biswps:1382
Authors
Iñaki Aldasoro and Rashad Ahmed

Citations and venue from Semantic Scholar (ODC-BY), refreshed weekly. Summary: Quant Letter (CC BY 4.0).

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