Circle Prepares for Financial Blow Amidst Rate Cut Pressure

Circle, the issuer of the popular USDC stablecoin, is facing a potential revenue hit due to the anticipated 100 basis point (1%) rate cut by the U.S. Federal Reserve. According to an analysis shared by Wu Blockchain, this move could slash Circle’s annualized revenue by $618 million, impacting its gross profit significantly. The company is aiming to counter this with a strategic shift involving increased USDC supply, new products like CPN (Circle Payment Network), and a $1.5 billion share sale.