WuBlockchain’s forwarded post says higher U.S. bank deposit rates predict slower stablecoin growth: a 1 basis point rise is associated with about a 3 percentage point drop in average 10-week market-cap growth, from roughly 15% to 12%. In the paper’s preferred instrumental-variable estimate, growth falls to about 6%, though the estimate is less certain. The stablecoin market was still growing in both cases. WuBlockchain BIS summary

WuBlockchain’s forwarded post says higher U.S. bank deposit rates predict slower stablecoin growth: a 1 basis point rise is associated with about a 3 percentage point drop in average 10-week market-cap growth, from roughly 15% to 12%. In the paper’s preferred instrumental-variable estimate, growth falls to about 6%, though the estimate is less certain. The stablecoin market was still growing in both cases. WuBlockchain BIS summary

The estimated response is stronger for USDC, down 4.8 percentage points, than USDT, down 1.9 points. The summary attributes the difference possibly to USDC’s closer ties to U.S. users. The findings describe aggregate growth, not proof that particular holders moved money from stablecoins into bank deposits. WuBlockchain DeFiPrime

The sources do not establish which holders or banks drove the aggregate effect.