Data: For every 50 basis points the Federal Reserve cuts interest rates, Tether and Circle's annual revenues decrease by $488 million and $144 million, respectively

ChainCatcher news, stablecoin research company Bluechip posted on the X platform that for every 50 basis points the Federal Reserve cuts interest rates, Tether's annual revenue decreases by $488 million, and Circle's annual revenue decreases by $144 million. As the Federal Reserve lowers interest rates, the earnings that stablecoin issuers receive from U.S. Treasury bonds decline, which may force them to make riskier investments to compensate for the loss of income.

In addition, according to screenshots shared by Bluechip, as of September 22, Circle and Tether hold over $125 billion in U.S. Treasury bonds.