Data: For every 50 basis points the Federal Reserve cuts interest rates, USD stablecoin issuers will lose $625 million in annual interest income
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.