According to Golden Finance, Alexander Deschatres, Head of Sponsor Responsibility for Asia at Standard Chartered Bank, believes that stablecoins could mitigate the negative impact of a Federal Reserve rate cut on Treasury and money market tokens.

Deschatres said, "A $170 billion supply of stablecoins represents a pool of funds that could be converted into money market tokens and Treasury bills, potentially providing a buffer against the negative effects of a Fed rate cut." He believes that the market currently expects a 100 basis point rate cut this year, which would bring the benchmark borrowing cost down to 4.5% by the end of the year, based on federal funds futures. However, he argues that this is an attractive yield compared to passively holding stablecoins.