Libeara Business Development Director: $170 billion in stablecoin supply may ease the impact of the Fed's rate cut on Treasury tokens
PANews reported on September 19 that according to CoinDesk, Alexandre Deschâtres, head of business development at Libeara, said that the $170 billion stablecoin supply may be able to mitigate the impact of the AR's interest rate cuts on blockchain-based government bond tokens. As the AR is expected to initiate a rate cut cycle on Wednesday, the rate cut may dampen the demand for government bond tokens traded on the blockchain. However, stablecoins can provide liquidity support for the money market and government bond tokens. Currently, the market expects the AR to cut rates by 100 basis points this year, but a 4.5% interest rate is still attractive compared to holding stablecoins.
