Investment Learning

  • September 24, 2024

Fed Rate Cuts Impact Stablecoin Issuers' Revenue

According to PANews, stablecoin research firm Bluechip has revealed on the X platform that for every 50 basis points the Federal Reserve cuts interest rates, Tether's annual revenue decreases by $488 million, while Circle's annual revenue drops by $144 million. As the Federal Reserve lowers interest rates, the income stablecoin issuers earn from U.S. Treasury bonds declines, potentially forcing them to seek higher-risk investments to offset the revenue loss.Additionally, Bluechip shared a screenshot indicating that as of September 22, Circle and Tether collectively hold over $125 billion in U.S. Treasury bonds.

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  • September 24, 2024

Stock market today: Wall Street drifts to more records after Chinese stocks soar

U.S. stocks drifted to more records Tuesday after Chinese stocks soared following a slew of moves by the Chinese central bank to prop up the world’s second-largest economy. The movements were tentative, though, and the index wavered up and down following a surprisingly weak report released in the morning on confidence among U.S. consumers. The Dow Jones Industrial Average added 83 points, or 0.2%, to its own record set the day before, while the Nasdaq composite gained 0.6%.

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