Libeara Business Development Head: $170 Billion Stablecoin Supply Could Mitigate Fed Rate Cuts Impact on Treasury Tokens
PANews reports: Stablecoins Could Counteract Fed Rate Cuts Impact on Treasury Tokens
According to CoinDesk, Alexandre Deschâtres, Head of Business Development at Libeara, believes the $170 billion stablecoin supply could mitigate the impact of the Federal Reserve's rate cuts on Treasury tokens. As the Fed is expected to initiate a rate cut cycle this Wednesday, a decrease in interest rates might dampen the demand for Treasury tokens traded on blockchains. However, stablecoins can provide liquidity support for the money market and Treasury tokens.
Currently, the market anticipates a 100 basis point cut in interest rates this year. Despite this, a 4.5% interest rate remains attractive compared to holding stablecoins.
