Template-Type: ReDIF-Paper 1.0
Author-Name: Wenqian Huang
Author-X-Name-First: Wenqian
Author-X-Name-Last: Huang
Author-Name: Nikola Tarashev
Author-X-Name-First: Nikola
Author-X-Name-Last: Tarashev
Author-Name: Xinyi Wang
Author-X-Name-First: Xingyi
Author-X-Name-Last: Wang
Title: Stablecoin remuneration on centralised exchanges
Abstract: Centralised exchanges remunerate stablecoin holders, using the return on the issuer's reserve assets or income from market activity. Under the reserve-based model, yields track policy rates – akin to yields on cash-management instruments – whereas under the activity-based model, yields are much more volatile. By turning stablecoins into substitutes for bank deposits or money market funds or into funding instruments for exchanges' risky activities, remuneration models may shape the macro financial implications of wide stablecoin adoption in the future.
Length: 8 pages
Creation-Date: 2026-06-19
File-URL: https://www.bis.org/publ/bisbull125.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/bisbull125.htm
File-Format: text/html
Number: 125
Handle: RePEc:bis:bisblt:125