According to Odaily Planet Daily, a market analysis report shows that after the latest interest rate cut by the Federal Reserve, the stablecoin industry will suffer a significant loss in interest income. The top five centralized stablecoin issuers hold nearly $125 billion in U.S. Treasury bonds, accounting for nearly 80.2% of their reserve funds.
Every 50 basis point rate cut by the Federal Reserve will result in a loss of $625 million in interest income per year for the issuer of the US dollar stablecoin. Data shows that Tether holds nearly $93.2 billion in US Treasury bills and repurchase agreements, which contributed most to its net profit of $5.2 billion in the first half of 2024.
The second-largest stablecoin, USDC, holds $28.7 billion worth of U.S. Treasuries through its Circle Reserve Fund.
