Fed rate cuts could trigger capital influx of income stablecoins

As the Federal Reserve ends its Federal Open Market Committee meeting, it is expected to cut interest rates by 25 basis points, the cryptocurrency market expects liquidity to flood earnings assets. Kevin Rusher, founder of the risk asset ecosystem RAAC, stressed that the rate cut could release trillions of dollars in money market liquidity, which could benefit earning DeFi products and RWA tokens. He noted that stablecoins, especially those that generate returns through real-world assets, may be more widely adopted, with the current value of the yield-based stablecoin market at $13.7 billion.