According to PANews, stablecoin research company Bluechip published an article on the X platform stating that for every 50 basis point rate cut by the Federal Reserve, Tether's annual revenue will decrease by US$488 million and Circle's annual revenue will decrease by US$144 million.

As the Federal Reserve cuts interest rates, stablecoin issuers’ returns from U.S. Treasuries fall, which could force them to make riskier investments to make up for lost revenue.

In addition, according to a screenshot shared by Bluechip, as of September 22, Circle and Tether held more than $125 billion in U.S. Treasuries.