Analysis: For every 50 basis point rate cut by the Federal Reserve, Tether and Circle’s annual revenues will decrease by $488 million and $144 million respectively

Stablecoin research company Bluechip published an article on X saying that for every 50 basis point rate cut by the Federal Reserve, Tether's annual revenue will decrease by $488 million and Circle's annual revenue will decrease by $144 million. As the Federal Reserve cuts interest rates, stablecoin issuers' income from U.S. Treasuries will decline, which may force them to make riskier investments to make up for the loss of income. Based on the picture shared by Bluechip, as of September 22, Circle and Tether held more than $125 billion in U.S. Treasuries.