ChainCatcher news, according to 4E monitoring, on Wednesday, the three major U.S. stock indices fell, influenced by weak stock prices of Apple and Nvidia. Investors sold off technology stocks, chip stocks, and AI concept stocks, dragging the Nasdaq down by 1.60%, leading the decline, while the Dow and S&P both fell about 1% and have declined for three consecutive days. The cryptocurrency market followed the general downturn of U.S. stocks, with Bitcoin briefly approaching $65,000. As of the time of writing, Bitcoin is at $67,300, up 0.36%, while Ethereum is at $2,550, down 2.43%.In the foreign exchange and commodity markets, as the election approaches, investors are weighing the possibility of a significant victory for Trump, which is considered the most favorable outcome for the dollar. The dollar index rose over 0.3% to near a three-month high, with the yen, euro, and pound all declining. Spot gold approached $2,760 during the session, setting a historical high for five consecutive days. Subsequently, the dollar and U.S. Treasury yields rose together, putting pressure on precious metals, turning gains into losses. Spot gold fell 1.2% at the close, while spot silver briefly dropped 4%, departing from its twelve-year high. Last week, the EIA crude oil inventory increase exceeded expectations, putting pressure on oil prices, with U.S. oil falling over 1.3%, ending a two-day rise.The Federal Reserve's Beige Book released on Wednesday showed little change in U.S. economic activity, with an increase in hiring by businesses and continued easing of inflationary pressures. With a series of strong economic data released recently, expectations for Fed rate cuts have weakened, coupled with "Trumpflation" prompting the market to reconsider rate cut expectations, especially for next year, leading to a sustained rise in the dollar and U.S. Treasury yields, which pressured risk assets. The stock market, commodities, cryptocurrencies, and non-U.S. currencies were generally under pressure. eeee.com is a financial trading platform that supports assets such as cryptocurrencies, stock indices, commodity gold, and foreign exchange. It recently launched a USDT stablecoin financial product with an annualized yield of 5.5%, providing investors with a potential hedging option. 4E reminds you to pay attention to market volatility risks and to allocate assets reasonably.

ChainCatcher news, UBS strategist Emmanouil Karimalis pointed out in a report that the recent trends in U.S. Treasury bonds and the yield curve seem more pronounced than the average and median of comparable historical periods, ahead of the Federal Reserve's expected rate cut on September 18."The bond market typically rebounds at the time of a Fed rate cut, but compared to past cycles, the recent rebound has been larger; the increase in the 10-year U.S. Treasury bond over the past month is the largest in recent history," he stated, adding that the current market pricing seems to be more excessive compared to the last three Fed rate cut cycles.According to Tradeweb data, the yield on the 10-year U.S. Treasury bond is currently 3.717%, having decreased by 23 basis points over the past month. (Jin Shi)

ChainCatcher message, Bitwise Senior Investment Strategist Juan Leon posted on X: "According to a report by Bloomberg, stablecoins currently hold about 1% of U.S. Treasury securities, but this percentage could soon grow to 15%, making them one of the top three holders.Without regulation, the market value of stablecoins has skyrocketed from $0 to nearly $170 billion in just a few years. Now, a stablecoin bill has gained bipartisan support in Congress, and Federal Reserve officials have recognized stablecoins as a new tool that can enhance the dollar's influence globally and support the U.S. Treasury market.As stablecoin regulation is set to take effect in Europe in 2025, and with the U.S. looking to catch up, stablecoins will increasingly be embedded in the pipelines of the digital economy. With AI agents becoming more prevalent, stablecoins will become the preferred mechanism for digital commerce.The digital economy now accounts for 15% of the global economy and is growing at a rate 2-3 times faster. The use of stablecoins is growing at an exponential rate, meaning the speed from $170 billion to $1 trillion will be faster than from $0 to $170 billion. A $1 trillion stablecoin Treasury purchase volume would dwarf the top 10 money market funds and place it among the top three holders (over $800 billion)."

ChainCatcher news, Tether CEO Paolo Ardoino posted on X that, according to the WSJ, "dollar-backed stablecoins have created demand for U.S. Treasuries." Over 300 million people globally use USDT as a digital dollar, providing a lifeline utility for entire communities in developing countries. These individuals are underserved by the banking industry, with most still lacking bank accounts and being affected by high inflation and rapid depreciation of their local currencies.Tether brings dollar stability to emerging markets through USDT and is also one of the top three global buyers of U.S. short-term Treasury bills (T-bills), ranking in the top 20 overall.

ChainCatcher news, according to CoinDesk, the tokenization company PV01, led by cryptocurrency market maker B2C2's founder Max Boonen, announced on Tuesday that it has completed its first tokenized bond sale under UK law, marking a key step towards the goal of creating a bond market (including corporate debt) on the blockchain.It is reported that the asset is a tokenized version of a $5 million U.S. Treasury bond issued on April 8, which was redeemed a week later, with market makers B2C2, BlockTower Capital, and Keyrock investing in PV01's "proof of concept" issuance.After the completion of the initial issuance, Boonen stated that PV01 plans to expand its tokenized Treasury bond issuance in the short term and to scale up to corporate bond issuance in the medium term.

According to ChainCatcher, as reported by Blockworks, Frax Finance will launch the sFRAX vault today, which utilizes the yields from U.S. Treasury bonds. It opens a brokerage account in partnership with Lead Bank in Kansas City to purchase U.S. Treasury bonds, tracking the Federal Reserve's interest rates to maintain relevance. Users will be able to deposit funds into sFRAX and earn a 10% yield, which will then shrink to the Federal Reserve's current IORB rate, approximately 5.4%.

ChainCatcher news, Circle disclosed on its official blog "The Structure and Management of USDC Reserves." Approximately 80% of USDC reserves are in short-term U.S. Treasury securities, and about 20% are cash deposits in the U.S. banking system. The reserves are fully transparent and subject to third-party assurance that sufficient assets are available to meet liabilities. They do not include any other assets with different risk profiles.The Treasury securities in the USDC reserves are held by a wholly-owned government money market fund structure regulated by the SEC. They are not subject to any lock-up or redemption thresholds. There are daily independent third-party reports on the portfolio, detailing each security.Circle holds about 20% of its cash reserves to meet customers' immediate liquidity needs. Following several recent bank failures, Circle has taken steps to reduce risks in the banking system, placing nearly all of the cash portion of its reserves in the now 30 globally significant banks (also known as GSIBs). GSIBs are widely regarded as the safest banks, with the highest capital, liquidity, and regulatory requirements in the world. Circle also holds a small amount of funds with trading bank partners to support USDC liquidity operations.Additionally, Circle stated that the company has long sought to hold the cash portion of USDC reserves directly at the Federal Reserve, realizing the vision of USDC as true tokenized cash. For this, stablecoin legislation is needed. Circle also mentioned that for the benefit of USDC holders, USDC reserves are held in segregated accounts. (source link)