Do stablecoins really threaten bank deposits and lending? That's the concern banks keep raising.

Their argument centers on "deposit flight" and systemic stability risks. Sounds serious. But here's the thing—when you dig into the actual research, the story gets way more nuanced.

A CRA analysis dug into this and found something interesting: there's no statistically significant relationship between USDC adoption and bank deposit movements. Not exactly what the doom-and-gloom narratives were pushing.

This matters because the mainstream narrative around stablecoins destabilizing traditional finance often relies on worst-case assumptions rather than on-the-ground data. The research suggests the real-world impact is more complex and less catastrophic than the scare stories suggest.

Worth considering when the next round of "stablecoins are killing banking" takes over the headlines.