# Campbell Says Stablecoin Purchases Shift Deposits Between Banks By Riza Dagoc Canonical URL: https://www.tokenpost.com/news/regulation/42333 Published: 2026-10-28T04:19:29.000Z Updated: 2026-10-28T04:19:29.000Z Section: Regulation > He argued that dollars land in another bank account, such as an issuer’s reserve account, and flow back through redemptions. Bank groups warn yield-bearing tokens could draw money from deposits. Austin Campbell, founder of Zero Knowledge Consulting and a former portfolio management lead at Paxos, said stablecoin purchases shift deposits between banks rather than drain the banking system’s total. Campbell called a systemwide deposit flight “mathematically not possible.” When someone buys a stablecoin, he said, the dollars land in another bank account, such as an issuer’s reserve account. Redemptions reverse that movement. One bank can lose deposits while another gains them, Campbell said. His argument concerns the total across the banking system; it does not rule out shifts among individual banks. The comments come amid debate over whether yield-bearing stablecoins could draw deposits from banks. Bank trade groups have urged lawmakers and regulators to restrict tokens that pay yield, warning they could pull money from deposits. [Research linking higher U.S. bank deposit rates to slower stablecoin growth]() examined the relationship between deposit pricing and stablecoin growth. It did not establish a direct effect on total bank deposits or lending. ## Links in this article - [Research linking higher U.S. bank deposit rates to slower stablecoin growth](https://www.tokenpost.com/news/business/31255)