Stablecoin remuneration on centralised exchanges

Wenqian Huang, Nikola Tarashev and Xingyi Wang

No 125, BIS Bulletins from Bank for International Settlements

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.

Pages: 8 pages
Date: 2026-06-19
New Economics Papers: this item is included in nep-fdg, nep-mon and nep-pay
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