Reserve-based yields closely follow the policy rate. By contrast, activity-based yields tend to reflect the impact of the policy rate on stablecoin-related activities. Thus, stablecoin yields tend to rise after policy rate cuts.
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Bank for International Settlements
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Promoting global monetary & financial stability since 1930
- Centralised exchanges pay stablecoin holders with issuers’ reserve income or revenue from intermediation activity. Reserve-based yields follow policy rates closely, while activity-based yields are more volatile. bit.ly/4vSSrxk #BISBulletin
- 📅 Mark your calendars: The BIS Annual Economic Report 2026, released on 28 June, will cover a new fiscal–financial stability nexus, inflation risks, AI boom risks, financial fragilities and high public debt and look into policy priorities. #BISAnnualEconReport
00:00 - A new working paper studies how to build sovereign bond portfolios that integrate “carbon returns” with traditional financial returns to balance financial & environmental risks. Results align decarbonisation with performance bit.ly/4aADKa1 #ClimateFinance #SovereignBonds
- The BIS 2025 Triennial Survey of FX markets classifies the use of FX settlement methods to shed new light on FX settlement risk, ie the risk that one party to an FX trade fails to deliver the currency owed. bit.ly/4erfl8e #BISQuarterly #BISStatistics
- Bond yields don't react the same way to all economic surprises. BIS research finds that disagreement among forecasters dampens market moves, but high monetary policy uncertainty amplifies them. Covid-19 reversed the impacts of inflation and jobs data. bit.ly/3SAM0AD
- In April 2025, 90% of FX trades were settled using methods which eliminate or minimise FX settlement risk. But 10% remained exposed to this risk. bit.ly/4erfl8e #BISQuarterly #BISStatistics
- The updated Markets Committee Compendium shows how central banks have taken different approaches to expanding liquidity access beyond banking and in collateral frameworks, balancing liquidity provision with risk and cost considerations. bit.ly/4aw4JDF #BISQuarterly
- The updated Markets Committee Compendium provides valuable insights about the “nuts and bolts” of central banks’ operational frameworks, with new information about counterparty access and collateral frameworks. bit.ly/4aw4JDF #BISQuarterly #Monetarypolicyframework
- How do acquisitions of distressed banks impact lending? A new working paper on Banco Popular’s 2017 failure shows that well capitalised acquirers can stabilise credit, especially for riskier businesses, while limiting economic disruption bit.ly/4v2ei5x #Banking #Finance
- How do asset price bubbles and money market funds (MMFs) interact in determining systemic risk? Large and government MMFs are generally associated with lower systemic risk, while prime MMFs contribute more strongly to financial fragility. bit.ly/3SnKqlu
- Digitalisation and social media are reshaping #DepositPricing. #DigitalBanks pay higher deposit rates and respond more strongly to policy rate changes, especially where social media activity is high. bit.ly/4uY6HoK
- The Credit Suisse episode was the first major test of the post-crisis resolution framework for global banks. A working paper traces how investors repriced bail-in risk across 94 European banks the following year & what it means for bail-in credibility: bit.ly/4dPAZnx













