**News Flash: Fed Rate Cuts to Impact Stablecoin Revenues**

The Federal Reserve's recent decision to cut interest rates for the first time since March 2020 is set to shake up the stablecoin market. The top five centralized stablecoins, which collectively hold nearly $125 billion in US treasury bills, are bracing for a significant hit to their revenue streams.

- **Impact on Revenue**: According to CCData, treasury bills make up 80.2% of major stablecoin reserves. Each 50-basis point (bps) cut could slash approximately $625 million in interest income.

- **Future Cuts**: The CME Group’s FedWatch tool indicates a potential 75-bps rate cut by the end of 2024, including a 50-bps cut in November and an additional 25 bps in December. This could total a $1.5625 billion revenue loss for stablecoins.

- **Leading Stablecoins**: Tether’s USDT leads with $93.2 billion in T-bills, followed by Circle’s USDC with $28.7 billion. Smaller players like FDUSD, PYUSD, and TUSD also hold significant treasury assets.

- **Market Trends**: Despite a 1.50% rise in stablecoin market capitalization to $172 billion in September, trading volumes on centralized exchanges have dropped by 39.4% to $683 billion as of Sept. 23.

USDT remains the most traded stablecoin, capturing 77.2% of all trading volume, with FDUSD and USDC trailing behind. The upcoming rate cuts could add pressure on stablecoins' profit margins, making the next few months critical for the market.