Higher U.S. bank deposit rates slowed stablecoin growth without reducing total existing stablecoin supply or turning market growth negative.

Overview Debates Related claims Topics Sources

France should tax cryptocurrency conversions into stablecoins

LogosFi, Inc. officially debuted and launched its testnet for tokenized assets and stablecoins at Money20/20 USA on October 19, 2026.

LogosFi, Inc. developed an API-driven shared evidence infrastructure that delivers machine-readable, cryptographically signed data on tokenized assets and stablecoins.

Headquartered in Malaysia, licensed digital bank Monfi Digital Bank Ltd. publicly launched a regulated, bank-issued US dollar stablecoin named Monfi USD (MUSD) at the TOKEN2049 conference in Singapore on October 19, 2026.

Fireblocks provides custody infrastructure and key management for Monfi USD (MUSD), while Chainalysis provides on-chain monitoring and sanctions screening.

Under TokenLogic's proposed entry route, an approved counterparty supplies USAT to Aave V4's Tokenization Spoke to receive waUSAT receipt tokens before swapping them for GHO.

TokenLogic's October 15, 2026 proposal specifies zero swap fees for the module while leaving contract addresses for Avalanche USAT, waUSAT, reserve, commercial counterparties, and pricing strategies unspecified.

An October 12, 2026 risk assessment by LlamaRisk reports a standard $1 million mint and burn minimum for USAT with Anchorage Digital Bank.

Redeeming USAT stablecoins for U.S. dollars requires an active client account relationship under a written agreement with issuer Anchorage Digital Bank.

TokenLogic's proposed Aave stability module requires approval for every swap, and revoking access prevents subsequent swaps, including attempts to recover previously deposited waUSAT receipt tokens after exchanging them for GHO.

TokenLogic submitted an October 15, 2026 governance proposal to introduce a permissioned GHO Stability Module for USAT on Aave V4 on Avalanche.

The European Securities and Markets Authority's e-money token register remained at 50 entries representing 25 unique entities, while the asset-referenced token register stayed at zero in the October 16, 2026 update.

AIsa supports transaction settlement using both conventional fiat currencies and stablecoins.

The study's instrumental-variable method relied on U.S. banks passing through significantly larger shares of federal funds rate increases to deposit rates once the federal funds rate exceeded 3%.

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.

The Bank for International Settlements study analyzed 339 weeks of U.S. data from January 2019 through June 2025, during which reserve-backed stablecoin market capitalization grew from under $5 billion to over $220 billion.

The Bank for International Settlements working paper described reserve-backed stablecoins and bank deposits as partial substitutes because non-yielding stablecoins become less attractive as bank deposit yields rise.

Under the baseline statistical model in an October 13, 2026 Bank for International Settlements paper by Iñaki Aldasoro and Rashad Ahmed, a one-basis-point increase in U.S. bank deposit rates reduced average 10-week stablecoin market growth from 15% to 12%.

The authors suggested regulators evaluate requiring stablecoin issuers to hold part of their reserves as bank deposits, noting it could support bank funding but concentrate uninsured deposits in few banks.

When estimating the statistical relationship, the BIS study's authors controlled for federal funds rates, U.S. Treasury yields, dollar movements, Bitcoin prices, and stock market volatility.