OKX, a leading cryptocurrency exchange, has announced the launch of six new USDC trading pairs, further expanding the USDC ecosystem and providing users with more trading options. The exchange’s move is aimed at increasing USDC’s market presence while meeting the needs of its growing user base. These new pairs will go live on October 14, 2024.
OKX Announces Six New USDC Trading Pairs
On October 14, 2024, from 10:00 to 10:30 PM (UK time), OKX will activate six new spot trading pairs: AEVO-USDC, ATH-USDC, CATI-USDC, ETHFI-USDC, JUP-USDC, and ZETA-USDC. With these new pairs, OKX aims to boost USDC trading volume and give its users more opportunities to diversify their portfolios and engage in flexible trading. As a result, the use of USDC is expected to grow, making cross-asset trading easier.
These new trading pairs are expected to open up more opportunities for investors, allowing them to diversify their portfolios and engage in more flexible trades with USDC.
Stablecoin Issuers Face Challenges Amid Rate Cuts
While OKX continues to support USDC, stablecoin issuers face some challenges. A recent report highlighted how the Federal Reserve’s interest rate cuts could pressure companies that issue stablecoins, such as USDC and Tether. As interest rates fall, the income from U.S. Treasury bonds— a major source of revenue for these companies— will also decline.
This reliance on U.S. Treasury bonds directly affects the revenue of stablecoin issuers, so any change in interest rates could have a significant impact. To adapt, many of these companies, including USDC, are developing strategies to mitigate these effects. OKX is also monitoring the market closely, making strategic moves to align with these changes.
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Interest Rate Cuts Lead to Revenue Losses
According to a report from CCData, the top five stablecoin issuers collectively hold $125 billion worth of U.S. Treasury bonds, which account for 80% of their reserves. A 50-basis-point rate cut by the Federal Reserve could result in a $625 million loss in annual revenue for these companies. For example, Tether holds $93.2 billion in U.S. Treasury bonds, contributing significantly to the $5.2 billion profit it generated in the first half of 2024. OKX, meanwhile, is exploring alternative trading strategies to minimize the impact of these rate changes.
Similarly, USDC holds $28.7 billion in U.S. Treasury bonds, a significant part of its financial strength. As interest rates drop, the revenue for the stablecoin market is expected to decline. Other stablecoins like PYUSD and TUSD are also dependent on U.S. Treasury assets for their earnings. As these changes unfold, OKX is positioning itself to offer new trading opportunities to mitigate market fluctuations.
OKX’s introduction of six new USDC trading pairs is a strategic move to increase USDC usage while navigating the challenges posed by interest rate cuts in the stablecoin market. As stablecoin issuers adapt to this evolving landscape, OKX is taking proactive steps to provide its users with diverse trading opportunities.
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