The Fed's rate cut may trigger "hidden fees" for stablecoins, and users will face a surge in costs?

As expectations of a rate cut by the Federal Reserve increase, the stability of stablecoins such as Tether and USDC is facing severe challenges. Stablecoin issuers rely on interest income from U.S. Treasuries, but lower interest rates may force these companies to pass on costs and push up user fees.

Currently, Tether and USDC hold more than $120 billion in U.S. Treasuries, accounting for 70% and 21% of the market share respectively. However, once interest rates fall, these stablecoin issuers that rely on interest income from treasury bonds may fall into a profit dilemma and be forced to start charging users fees such as minting, destruction or transaction fees, which will weaken the low-cost advantage of stablecoins.

Companies are ready for change

While stablecoin issuers have begun to prepare for this change, their strategies vary. Circle CEO Jeremy Allaire believes that falling interest rates will drive investment and economic activity, thereby increasing demand for USDC, while Tether CEO Paolo Ardoino expects funds to flow into the crypto market and investors will seek higher returns.

At the same time, U.S. regulators have stepped up their crackdown on cryptocurrencies, collecting more than $19 billion in settlements, of which FTX and its affiliates accounted for $12.7 billion. In this environment, the future prospects of stablecoins are full of uncertainty. #多军的反击 #9月美国CPI实现6连降 #Meme浪潮持续，你看好哪一个？