Stablecoin issuers may face significant unrealized losses as the U.S. Federal Reserve is expected to lower interest rates in September, according to a report from CCData. The report indicates that the majority of the top five stablecoin issuers hold their reserves in short-term U.S. Treasury bills, with interest earned on these investments being an essential part of their business models. "The top five stablecoin issuers currently hold a collective $125 billion in short-term U.S. Treasurys, representing 80.2% of total stablecoin reserve assets," the report states. "The Fed’s rate cut, which trims short-term Treasury yields, will lead to an estimated $625 million annualized revenue reduction based on a 50 basis point cut."
