The Bank for International Settlements has published a bulletin examining how centralised exchanges remunerate stablecoin holders and what that could mean if stablecoins gain broader use. Using data on stablecoin yields in 2023 to 2025, the bulletin identifies two main models. Under a reserve-based model, exchanges pass through part of the return earned on the stablecoin issuer’s reserve assets, so yields move closely with policy rates. Under an activity-based model, exchanges pay yields out of revenue from lending, trading, market-making and similar activity, making returns more volatile and more dependent on crypto market conditions. The bulletin uses Coinbase and Binance as the main examples of the two models. Coinbase’s USDC yield is described as closely tracking the monetary policy rate and the return on reserve assets such as Treasury bills, reverse repo instruments collateralised by Treasury bills, and bank deposits. Binance’s USDT and USDC yields, by contrast, move with borrowing demand on the exchange, with USDT borrowing rates reaching 40% to 50% during crypto rallies in the first and fourth quarters of 2024 and the related holding yield exceeding 20%. Econometric analysis in the bulletin suggests crypto market activity is the main driver of Binance stablecoin yields, while benchmark yields often offset part of the move. The bulletin says the remuneration model could shape the macro-financial effects of wider stablecoin adoption. Reserve-based remuneration could make stablecoins closer substitutes for bank deposits or money market funds and affect monetary policy transmission through shifts in funding. Activity-based remuneration could turn stablecoins into funding instruments for exchanges’ riskier activities and amplify boom-bust flows, redemptions and potential run pressures that could spill over to the assets backing stablecoins.
Bank for International Settlements2026-06-19
Bank for International Settlements bulletin finds centralised exchange stablecoin yields split between reserve-based and activity-based models
The Bank for International Settlements has published a bulletin finding that centralised exchanges mainly remunerate stablecoin holders through either reserve-based or activity-based models. Reserve-based yields track policy rates, while activity-based yields are more volatile and tied to crypto market demand. The bulletin says the choice of model could shape stablecoins’ effects on deposits, money markets, exchange funding and monetary policy transmission.