CCData: For every 50 basis point rate cut by the Federal Reserve, issuers of US dollar stablecoins will lose $625 million in interest income each year

BlockBeats news, on September 30, according to a new report from CCData, the stablecoin industry will have to bear a substantial loss in interest income after the Fed's latest rate cut. The top five centralized stablecoin issuers hold nearly $125 billion in U.S. Treasuries, accounting for nearly 80.2% of their reserve funds. Every 50 basis point rate cut by the Federal Reserve will result in a loss of $625 million in interest income for U.S. dollar stablecoin issuers each year.

Data shows that Tether holds nearly $93.2 billion in U.S. Treasuries and repurchase agreements, which contributed most to its $5.2 billion net profit in the first half of 2024. The second largest stablecoin USDC holds $28.7 billion worth of U.S. Treasuries through its Circle Reserve Fund, while FDUSD, PYUSD, and TUSD hold U.S. Treasury assets worth $1.83 billion, $634 million, and $502 million, respectively.