According to BlockBeats, the Federal Reserve's interest rate decisions could significantly impact stablecoin issuer Circle. While interest rate hikes have been beneficial for Circle, potential rate cuts pose a challenge. As the threat of rate cuts looms, Circle is exploring new business avenues to mitigate potential revenue losses.

Currently, Circle's revenue primarily comes from interest on billions of dollars in cash, U.S. Treasury bonds, and other assets backing its popular USDC stablecoin. In an interview, Circle CEO Jeremy Allaire mentioned that the company is considering charging for blockchain wallet services and other crypto infrastructure offered to developers and businesses as a potential new revenue stream.