Economists Iñaki Aldasoro and Rashad Ahmed attributed USDC's higher sensitivity to deposit rates to its closer connections to U.S. institutional users and domestic financial markets relative to USDT's offshore focus.

From the articleA 1-basis-point deposit rate rise cuts stablecoin growth from 15% to 12%, BIS paper findsAlso in BIS: Bank rate hikes cut stablecoin growth by 3 points, Banks Hold a Lever Over Stablecoin Adoption, BIS Economists Say - Decrypt, USDC faces bank-rate pressure – Can Visa’s payments push offset it? - AMBCrypto, Stablecoin Growth Cooled as Deposit Rates Rose, With USDC Most Exposed, Working Paper Says - Unchained