The Fed cut rates for the first time since March 2020, which will hit the top 5 centralized stablecoins' revenues hard, holding $125 billion in U.S. Treasuries.
- Treasuries make up 80.2% of major stablecoins' reserves.
- Revenue loss: $625 million for every 50 bps of rate cut.
- Forecast: 75 bps cut by end-2024, resulting in a $1.5625 billion loss.
USDT leads with $93.2 billion in bonds, followed by USDC with $28.7 billion. Rate cuts will increase pressure on stablecoin profitability.
Despite stablecoin market cap growth to $172 billion in September, centralized exchange trading volumes fell 39.4% to $683 billion.
USDT remains the most popular stablecoin with 77.2% of trading volume. 📉