Fed Rate Cuts Impact Stablecoin Issuers' Revenue

According to PANews, stablecoin research firm Bluechip has revealed on the X platform that for every 50 basis points the Federal Reserve cuts interest rates, Tether's annual revenue decreases by $488 million, while Circle's annual revenue drops by $144 million. As the Federal Reserve lowers interest rates, the income stablecoin issuers earn from U.S. Treasury bonds declines, potentially forcing them to seek higher-risk investments to offset the revenue loss. Additionally, Bluechip shared a screenshot indicating that as of September 22, Circle and Tether collectively hold over $125 billion in U.S. Treasury bonds.