ChainCatcher news, according to a new report from CCData, the stablecoin industry will have to endure significant losses in interest income following the Federal Reserve's latest interest rate cut. The top five centralized stablecoin issuers collectively hold nearly $125 billion in U.S. Treasury securities, accounting for nearly 80.2% of their reserve funds. For every 50 basis points the Federal Reserve cuts rates, it will result in an annual loss of $625 million in interest income for dollar stablecoin issuers.Data shows that Tether holds nearly $93.2 billion in U.S. Treasury securities and repurchase agreements, which contributes significantly to its net profit of $5.2 billion in the first half of 2024. The second-largest stablecoin, USDC, holds $28.7 billion in U.S. Treasury securities through its Circle Reserve Fund, while FDUSD, PYUSD, and TUSD hold $1.83 billion, $634 million, and $502 million in U.S. Treasury securities, respectively.

ChainCatcher message, according to a report published by CCData, the five major centralized stablecoins collectively hold nearly $125 billion in U.S. Treasury bonds. For every 50 basis points (bps) cut in interest rates by the Federal Reserve, there could be a loss of approximately $625 million in interest income. The report shows that U.S. Treasury bonds account for 80.2% of the reserves held by major stablecoins.Data from the Chicago Mercantile Exchange's FedWatch tool indicates that the market expects a total interest rate cut of 75 basis points by the end of 2024. If this prediction comes true, stablecoins could face an additional loss of $937.5 million in income, bringing the total potential loss due to the Federal Reserve's easing policy to $1.5625 billion.Among the affected stablecoins, Tether's USDT holds the largest share of U.S. Treasury-backed reserves, totaling up to $93.2 billion, including U.S. Treasury bonds and repurchase agreements. Following closely is Circle's USD Coin (USDC), which holds $28.7 billion in U.S. Treasury bonds through the Circle Reserve Fund, while other stablecoins have smaller positions in Treasury bonds.Despite these potential financial setbacks, the stablecoin market continues to show resilience. According to CCData, in September, the total market capitalization of stablecoins increased by 1.50%, reaching $172 billion, marking 12 consecutive months of growth.

ChainCatcher news, according to Cryptonews, the Federal Reserve recently decided to cut interest rates for the first time since March 2020, which is expected to impact the income streams of the five major centralized stablecoins. According to a report released by CCData on September 27, these stablecoins collectively hold nearly $125 billion in U.S. Treasury securities, and for every 50 basis points (bps) cut in interest rates, they could lose about $625 million in interest income. The report indicates that U.S. Treasury securities account for 80.2% of the reserves held by major stablecoins.Data from the Chicago Mercantile Exchange's FedWatch tool shows that the market expects a total interest rate cut of 75 basis points by the end of 2024, including a 50 basis point cut in November and a 25 basis point cut in December. If these predictions come true, stablecoins could face an additional income loss of $937.5 million, bringing the total potential loss from the Federal Reserve's easing policy to $1.5625 billion.Among the affected stablecoins, Tether's USDT holds the largest share of U.S. Treasury-backed reserves, totaling up to $93.2 billion, including U.S. Treasuries and repurchase agreements. Following closely is Circle's USD Coin (USDC), which holds $28.7 billion in U.S. Treasuries through the Circle Reserve Fund. Other stablecoins, such as First Digital USD (FDUSD), PayPal USD (PYUSD), and TrueUSD (TUSD), have smaller Treasury positions of $1.83 billion, $634 million, and $502 million, respectively.Despite these potential financial setbacks, the stablecoin market continues to show resilience. According to CCData, in September, the total market capitalization of stablecoins increased by 1.50%, reaching $172 billion, marking 12 consecutive months of growth.