đ Latest news from Odaily Planet Daily! The Fed's latest interest rate cut policy has brought a significant impact on the stablecoin industry. According to market analysis reports, the top five centralized stablecoin issuers will face a significant reduction in interest income. đž
đ Data shows that these issuers hold a total of nearly $125 billion in U.S. Treasuries, accounting for 80.2% of their reserve funds. Every time the Fed cuts interest rates by 50 basis points, U.S. dollar stablecoin issuers will lose $625 million in interest income each year. Tether, in particular, holds nearly $93.2 billion in U.S. Treasuries and repurchase agreements, which contributed greatly to its net profit of $5.2 billion in the first half of 2024.
đ The second largest stablecoin USDC holds $28.7 billion worth of U.S. Treasuries through its Circle Reserve Fund. Despite market turmoil, Bitcoin has performed well and deserves attention! đ
