Federal Reserve to Maintain High Rates Through September 2027; Grayscale Predicts $190M Revenue Boost for Circle

According to Grayscale research chief Zach Pandl, the Federal Reserve will maintain elevated interest rates through September 2027 amid accelerating U.S. inflation and rising energy prices. The prolonged high-rate environment creates three effects on crypto assets: increased holding costs for zero-yield assets like Bitcoin, acceleration of fixed-income assets moving on-chain, and revenue growth for stablecoin issuers.

Pandl estimates that Circle and similar stablecoin issuers will see revenue increase by approximately $190 million for every 25-basis-point rate hike, as they hold interest-bearing assets but cannot pass returns to token holders. Bitcoin faces near-term pressure from higher opportunity costs, though Pandl remains bullish on long-term prospects.