tl;dr
Cryptocurrency exchange OKX is introducing six new trading pairs for the USDC stablecoin to support its ecosystem and users' trading needs. This move comes as the stablecoin industry, including USDC, USDT, FDUSD, PYUSD, and TUSD, is expected to suffer losses due to a Federal Reserve decision to cut ...
OKX, a cryptocurrency exchange, is set to introduce six new trading pairs for the USDC stablecoin in a move to bolster support amid a weakened outlook for stablecoin issuers. The stablecoin industry, including USDC, USDT, FDUSD, PYUSD, and TUSD, is anticipated to suffer losses following the Federal Reserve's decision to cut interest rates. Currently, the top five centralized stablecoins hold a substantial amount of US Treasury Bills, contributing to a combined market cap of $172.636 billion.
OKX's decision to roll out new trading pairs for the USDC stablecoin, the second-largest stablecoin by market cap, reflects its commitment to supporting the USDC ecosystem and meeting traders' diverse needs. The new spot trading pairs for USDC, including AEVO-USDC, ATH-USDC, CATI-USDC, ETHFI-USDC, JUP-USDC, and ZETA-USDC, will be introduced between 9:00 am and 9:30 am UTC on October 14, 2024.
The move comes in the wake of an industry report by CCData indicating that stablecoin issuers are likely to face losses after the Federal Reserve's interest rate cut. The report highlights the reliance of stablecoin issuers on interest income from government bonds, with the top five centralized stablecoins holding nearly $125 billion in US Treasury Bills, constituting approximately 80.2% of their reserves.
As a result of the interest rate cut, stablecoin issuers are projected to suffer substantial losses. Tether, the leading stablecoin, reportedly holds nearly $93.2 billion in US Treasury bills and repurchase agreements, contributing to a significant portion of their profit. Similarly, USDC holds $28.7 billion worth of US Treasury bills, while FDUSD, PYUSD, and TUSD hold US Treasury assets worth $1.83 billion, $634 million, and $502 million, respectively.
The Federal Reserve's decision has cast a shadow over the stablecoin industry, raising concerns about potential revenue losses for stablecoin issuers. Currently, the market cap of top stablecoins stands at $172.636 billion.