Fed rate cuts are likely to help push bitcoin and other risk assets higher, but some stablecoin issuers could suffer a hit to their revenue. Stablecoins are now collectively the 18th largest holder of U.S. Treasurys, with more than $120 billion of them backing different coins, and Bernstein recently called them an increasingly “systemically important” asset class . Tether (USDT) and USD Coin (USDC) dominate the market, making up 70% and 21%, respectively, according to CryptoQuant. “For most of these stablecoin issuers, the core business model is making the product free and retaining all of the interest that’s being earned from the Treasurys that are being purchased,” said Kevin Lehtiniitty, CEO of Borderless.xyz, a payments and…
