Fidelity: Fed rate cuts could be good for DeFi and stablecoins

Fidelity has stated that the expected Fed rate cut could reignite major institutions' interest in decentralized finance (DeFi) and stablecoins, provided that infrastructure continues to develop further this year. Fidelity's 2024 Digital Asset Outlook report, released on January 13th, stated that although institutions were expected to enter DeFi for its yield last year, they ultimately did not due to the Fed's interest rate hikes pushing them towards "perceived safer" traditional fixed-income products. If DeFi yields become more attractive than traditional finance (TradFi) yields again and more developed infrastructure emerges, institutions may have "new interest" in DeFi by 2024.