Bank of America (BAC) stated in a research paper Friday that digital assets continue to operate as risk assets, decreasing when global interest rates climb. Still, stablecoin inflows are a hint of an eventual comeback. According to the report, the four largest stablecoins saw exchange net inflows for the third week in a row, with large Binance USD (BUSD) inflows/USD Coin (USDC) outflows possibly due to investors “preemptively rotating” into BUSD from USDC to avoid disruptions following Binance’s decision to auto convert some stablecoins into its own stablecoin. Bank of America anticipates that regulatory clarity will facilitate the adoption of decentralized financing.
