CryptoSlate analysis indicates that even if stablecoins do not directly drain dollar deposits from banks, they could still make bank lending more expensive by altering the nature of deposits. Stablecoin issuers convert individual deposits into institutional deposits, which are typically a more unstable funding source for banks, thereby increasing banks' funding costs. A 2026 analysis by the Bank for International Settlements (BIS) also supports this view, suggesting that this could lead banks to require higher liquidity or more stable long-term funding, ultimately passing these costs on to borrowers.