The Bank for International Settlements (BIS) issues warnings about the yield offered by stablecoin. As BIS, as the name says, represents bans, they are not happy about the fair competition of the deposits and rates that the repositors receive: "A ban on the remuneration of stablecoin balances by CASPs is one possible tool." BIS explicitly highlight that the (US) banks do not offer a competitive yield (the same as US treasury notes, the safe haven asset) to their customers. "Some CASPs already offer products that allow users to earn returns on their payment stablecoin holdings, either directly or by facilitating access to DeFi lending protocols. These offerings have, at times, provided returns higher than those of traditional deposits. For example, in September 2025 some CASPs offered a 4.25% Annual Percentage Yield on USDC holdings, more than four times the average US bank deposit rate. 50 Similarly, in January 2025 DeFi lending rates on stablecoins such as USDT and USDC were, on average, 400 basis points higher than the US federal funds rate." " On one hand, banking stakeholders argue that allowing CASPs to remunerate stablecoin balances could attract deposits away from the traditional banking sector. 4 This could potentially raise funding costs for banks, constrain credit supply to firms and households, and make deposit flows more volatile in periods of stress. The arguments echo earlier debates on money market funds and other instruments that compeed with bank deposits. By contrast, crypto industry stakeholders argue that permitting remuneration of stablecoin balances by CASPs could broaden consumer choices and foster competition among different intermediaries." "The examples described in this section show how payment stablecoins, though designed as payment instruments, have been adapted into yield-bearing products once intermediated by CASPs. This demonstrates that stablecoins can be transformed into investment-like assets even without changing their core design. This stands in contrast to purpose-built yield stablecoins such as Ethena’s USDe, which are explicitly structured to pass returns directly to holders." Report here: Also attached is the FDIC report on how bank savings account depositors have been screwed over time.