PANews reported on September 29 that according to Cryptonews, the Federal Reserve recently decided to cut interest rates for the first time since March 2020, which is expected to affect the income streams of the five major centralized stablecoins. According to a report released by CCData on September 27, these stablecoins hold a total of nearly $125 billion in U.S. Treasury bonds, and for every 50 basis points (bps) in interest rate cuts, they may lose about $625 million in interest income. The report shows that U.S. Treasury bonds account for 80.2% of the reserves held by major stablecoins.

Data from the CME FedWatch tool shows that the market expects a total of 75 basis points in interest rate cuts by the end of 2024, including a 50 basis point cut in November and another 25 basis point cut in December. If these forecasts come true, stablecoins could face an additional loss of $937.5 million in revenue, bringing the total potential losses from the Fed's easing policy to $1.5625 billion.

Among the affected stablecoins, Tether's USDT holds the largest share of U.S. Treasury-backed reserves, totaling $93.2 billion, including U.S. Treasuries and repurchase agreements. It is followed by Circle's USD Coin (USDC), which holds $28.7 billion in U.S. Treasuries through the Circle Reserve Fund. Other stablecoins such as First Digital USD (FDUSD), PayPal USD (PYUSD), and TrueUSD (TUSD) hold smaller Treasury positions of $1.83 billion, $634 million, and $502 million, respectively.

Despite these potential financial setbacks, the stablecoin market has shown resilience. According to CCData data, in September, the total market value of stablecoins increased by 1.50% to $172 billion, marking 12 consecutive months of growth.