Data: For every 50 basis points cut in interest rates by the Federal Reserve, Tether and Circle's annual revenues decrease by $488 million and $144 million, respectively

Stablecoin research company Bluechip announced on X platform that for every 50 basis points reduction in interest rates by the Federal Reserve, Tether's annual revenue decreases by $488 million and Circle's annual revenue decreases by $144 million. As the Federal Reserve lowers interest rates, stable currency issuers' income from US treasury bond bonds declines, which may force them to make higher risk investments to compensate for income losses. In addition, according to the screenshot shared by Blueship, as of September 22, Circle and Tether held more than $125 billion of US treasury bond bonds.