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Grayscale: Federal Reserve May Maintain High Rates Through 2027, Pressuring Bitcoin but Benefiting Circle

GateNews
Monetary PolicyMacroeconomicsMarket AnalysisForex
BTC-3.25%
CRCLX-12.32%
AAVE-6%

According to Grayscale research head Zach Pandl on May 16, the Federal Reserve may maintain elevated interest rates long-term as U.S. CPI approaches 4%, with markets now expecting the first rate cut in September 2027. Grayscale noted that higher rates will accelerate tokenization of fixed-income assets, as dollar-denominated securities currently yield above most DeFi rates—for example, USDC lending on Aave yields 3.6% versus corporate debt at 4.5%. Stablecoin issuers including Circle will benefit from the higher-rate environment; Grayscale estimates that every 25 basis points of rate increase could add approximately $190 million to Circle’s annual revenue.

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