Overview: Why It Matters
Deposit mobility affects bank funding and customer economics. Understanding conditions for movement clarifies real, not hypothetical, impacts and separates data-driven effects from headlines.
Deposit Data: What We See
Movement correlates with rate spreads, UX quality, and ramp availability, not headlines alone.
Rate Differentials and Sensitivity
Spreads of 200–300 bps with transparent reserves increase sensitivity to movement.
Rails Friction: On/Off-Ramps and UX
Fast ramps and clear redemption policies reduce friction; batch processing and fees increase stickiness.
Segments Most Prone to Movement
- Large idle balances
- APY-lagging savings accounts
- Corporate operating cash
Issuer Constraints and Redemption
Short-duration, high-quality reserves, audited disclosures, and robust redemption partners bound movement speed. Duration mismatch and opaque statements increase stress vulnerability.
Scenarios and Stress Tests
Low migration where ramps are limited and spreads are narrow; moderate where rewards and UX advantages scale; high where access, yield, and transparency align with corporate needs.
Key Takeaways
- APY and UX drive mobility more than hype
- Policy shaping redesigns rewards, not demand
- Transparent issuers reduce risk during movement
Conclusion
Stablecoins drain deposits when the economics and rails make sense. The effect is conditional, not universal.