TechFlow news, on September 30, digital asset data provider CCData released a new report indicating that Federal Reserve interest rate cuts will significantly impact interest income in the stablecoin industry. The report states that approximately 80.2% of reserves (nearly $125 billion) held by the top five stablecoin issuers are invested in U.S. Treasury securities. For every 50 basis point rate cut, these issuers could lose about $625 million in annualized interest income.
Among them, Tether holds around $93.2 billion in U.S. Treasuries and repurchase agreements, which contributed $5.2 billion in net profit during the first half of 2024. USDC, FDUSD, PYUSD, and TUSD hold $28.7 billion, $1.83 billion, $634 million, and $502 million in U.S. Treasury assets, respectively.
