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[CCData: The Fed's Rate Cuts This Year Are Expected To Result In A Total Reduction Of $1.5625 Billion In Stablecoin Interest Income] According To Cryptonews, The Federal Reserve Recently Decided To Cut Interest Rates For The First Time Since March 2020, Which Is Expected To Affect The Revenue Streams Of The Five Major Centralized Stablecoins. According To A Report Released By CCData On September 27, These Stablecoins Hold A Total Of Nearly $125 Billion In U.S. Treasuries, And For Every 50 Basis Points (bps) In Interest Rate Cuts, They Could Lose About $625 Million In Interest Income. The Report Shows That U.S. Treasuries Account For 80.2% Of The Reserves Held By Major Stablecoins. Data From The Chicago Mercantile Exchange's FedWatch Tool Show That The Market Expects Interest Rates To Be Cut By A Total Of 75 Basis Points By The End Of 2024, Including A 50 Basis Point Cut In November And Another 25 Basis Point Cut In December. If These Predictions Come True, Stablecoins Could Face An Additional Loss Of $937.5 Million In Revenue, Bringing The Total Potential Losses From The Fed's Loose Policy To $1.5625 Billion. Among The Affected Stablecoins, Tether’s USDT Holds The Largest Share Of U.S. Treasury-backed Reserves, Totaling $93.2 Billion, Including U.S. Treasuries And Repurchase Agreements. It Is Followed By 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) Hold Smaller Treasury Positions Of $1.83 Billion, $634 Million, And $502 Million, Respectively. Despite These Potential Financial Setbacks, The Stablecoin Market Has Shown Resilience. According To CCData Data, In September, The Total Market Value Of Stablecoins Increased By 1.50% To $172 Billion, Marking 12 Consecutive Months Of Growth
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