US Edition
Rate Cuts Threaten Profits of Stablecoin Giants Tether and Circle
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The U.S. Federal Reserve is considering a 100-basis reduction in its key rates: a decision that could have major consequences for Circle, the issuer of the USDC stablecoin, which is highly dependent on Treasury bill yields. On the other hand, Tether, the USDT issuer, seems better prepared thanks to a strategy of diversification of its reserves. The article Circle faced the threat of a fall in rates: will the USDC be impacted? appeared first on C…
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Coin EditionRate Cuts Threaten Profits of Stablecoin Giants Tether and Circle
US interest rate cuts could slash Circle’s annual gross revenue by up to $618 million. The cuts, expected in September, would also slash gross profit by $303 million. Circle recently announced the debut of Arc, an EVM-compatible Layer-1 blockchain. Stablecoin giants Tether and Circle face a revenue...
Rate Cuts Pose Challenges for Stablecoin Issuers Like Circle
Interest rate cuts could significantly impact Circle’s annualized revenue, with estimates suggesting a potential reduction of over $600 million. Analyst TheOneandOmsy on X claims that a 100 basis point (bps) cut could slash Circle’s run rate gross revenue by $618 million, representing a 23% decrease, and gross profit by $303 million, or 30%, with margins […] The post Rate Cuts Pose Challenges for Stablecoin Issuers Like Circle appeared first on …
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