In This Article
- How to Earn Interest on Stablecoins: Quick Steps to Get Started
- How Does Earning Interest on Stablecoins Work?
- Can You Earn More Interest on Stablecoins Than on Fiat at a Bank?
- A Closer Look at Stablecoin Interest Rates
- Stablecoin Interest vs. Crypto Interest: Rates and Other Considerations
- Potential Risks of Earning Interest on Stablecoins
- Best Stablecoins for Earning Yield
- Conclusion: Start Earning Stablecoin Interest Today at Nexo
Stablecoins offer plenty of opportunities in the crypto market, and the ability to earn passive income through interest on your tokens is an enticing one. You yield a substantial return with minimal effort, and it’s no surprise that more and more investors are eager to learn how to earn interest on stablecoins.
Our guide covers everything you need to know, from how to start earning to which stablecoins offer the best return. Read on to learn how to earn yield on stablecoins today.
Key Takeaways on Earning Interest with Stablecoins
- Stablecoins can generate yield and then pass it on to holders through savings accounts, staking, yield farming, and lending platforms.
- Crypto savings accounts are the simplest way to start, offering flexible or fixed terms with relatively low risk but modest APYs.
- Staking and yield farming will generally provide higher yields but also introduce more risk, such as validator penalties, volatile reward tokens, and smart contract hacks.
- Lending platforms pay interest from borrowers’ repayments, but risks include market crashes, algorithmic failures, and protocol attacks.
- APYs on yield-bearing stablecoins often beat bank savings rates, but returns will vary across different platforms and can require high balances or holding native tokens.
- Watch out for platform insolvency, de-pegging of stablecoins, and liquidity lockups on fixed terms.
How to Earn Interest on Stablecoins: Quick Steps to Get Started
Here’s a quick overview of how to start earning interest on stablecoins using Nexo, which is our top-rated crypto savings account platform in 2026.
Step 1: Create a Nexo Crypto Interest Account: Visit Nexo and sign up for an account. You’ll need to complete Know Your Customer (KYC) checks before you can deposit stablecoins.
Step 2: Deposit Funds: Visit the crypto assets page and select Transfer for the stablecoin you want to deposit. You use your own cryptocurrency wallet to make a deposit to the address provided by Nexo. You must deposit at least $5,000 worth of crypto to earn interest.
Step 3: Start Earning: Navigate to the Nexo Savings Hub and tap Earn Daily Interest. Then tap Start Earning to begin earning interest on your tokens.
Step 4: Withdraw Your Principal and Interest: You can withdraw your principal or interest at any time for flexible savings or at the end of the minimum term for fixed savings.
4 Ways to Earn Stablecoin Interest Today
There are a few different ways you can earn passive income on stablecoins. We’ll take a close look at each approach and explain the benefits and risks of each.
Crypto Savings Accounts
Crypto savings accounts are the simplest and safest way to earn interest on stablecoins. They work just like traditional savings accounts, where you deposit your money and earn interest at a specified rate.
Many platforms offer both flexible savings accounts and fixed savings accounts. Flexible savings accounts let you withdraw your principal and interest at any time, but they typically offer lower annual percentage yields (APYs).
Fixed savings accounts require you to keep your money locked up for a specific amount of time, like 30 or 60 days, in exchange for a higher APY. You can withdraw your deposit early, but you’ll forfeit some or all of the interest you earned.
Crypto savings accounts aren’t quite as safe as traditional financial assets because the FDIC does not guarantee them. However, unless your savings account platform goes out of business, your cryptocurrency deposits should be safe.
Popular platforms that offer crypto savings accounts include Nexo, YouHodler, and Uphold.
Pros
- Very low risk to principal
- Flexible or fixed terms
- Beginner-friendly
Cons
- Offer relatively low APYs
Staking Platforms
Stablecoin staking represents the next step up in risk and reward from depositing in a crypto savings account.
When you stake stablecoins, you commit your tokens to a validator that actively verifies transactions on a proof-of-stake blockchain (such as Ethereum, Solana, or Cardano). The validator uses tokens as collateral when verifying transactions, then receives a reward for supporting the network. The reward is used to pay interest to everyone who staked their tokens.
However, there is some risk here since a validator could lose the tokens they put up as collateral if they act unfaithfully during the verification process. Therefore, there is a possibility of a negative return, albeit relatively unlikely.
Popular stablecoin staking platforms include centralized cryptocurrency exchanges like Coinbase and Binance, as well as decentralized finance (DeFi) platforms like Lido and Rocket Finance.
Pros
- Higher APYs than savings accounts
- Flexible or fixed terms
- Beginner-friendly
Cons
- Some risk to your principal
- Only supported on proof-of-stake blockchains
Yield Farming
Yield farming, also known as liquidity mining, is a more advanced strategy that involves depositing stablecoins into liquidity pools on decentralized exchanges and within decentralized finance (DeFi) projects. Once you have done so, you receive transaction fees or rewards for providing liquidity to these platforms.
Participants also typically receive tokens that represent their digital assets in the liquidity pool. These secondary tokens can be staked or deposited in a savings account, creating an opportunity to earn even more interest.
While yield farming offers significantly higher yields than savings accounts or staking, it also carries a much greater risk. Typically, yield farming protocols deliver interest in a token other than your deposited stablecoin, and the value of this reward token can fluctuate a lot. Additionally, the rewards paid by a liquidity pool can vary significantly depending on the number of participants. Liquidity pools can also be targeted by hacks, potentially draining the principal that participants committed to the pool.
Reputable yield farming platforms include Curve Finance, Harvest Finance, and decentralized exchanges such as PancakeSwap and SushiSwap.
Pros
- Potentially very high APYs
- Can stake secondary tokens
- Offered by established decentralized exchanges
Cons
- High risk to your principal
- Prone to hacks and scams
- Relatively complex
Lending Platforms
Crypto lending platforms enable you to lend stablecoins to people who want to borrow tokens. You can either offer loans directly or, more commonly, contribute to loan pools for specific stablecoins.
Loans can be fixed-term, requiring you to keep your funds deposited for a specified period, or they can be flexible. Most centralized exchanges offer fixed-term loans, whereas DeFi platforms provide flexible, algorithmically controlled loan terms.
Lending and borrowing protocols can be risky for both parties, but platforms mitigate this risk by requiring borrowers to over-collateralize their loans. That is, they have to put more value into the platform than they borrow. This ensures that if a borrower defaults, lenders can be paid back in full.
However, lending platforms can be risky if the entire market crashes, reducing the value of a borrower's collateral. They can also be vulnerable to hacks and attacks, such as the one that stole funds from the Aave protocol in 2023.
Popular decentralized finance (DeFi) platforms for lending stablecoins include Aave, Compound, and Maple Finance.
Pros
- Potentially high APYs
- Fixed and flexible lending terms available
- Loans are typically over-collateralized
Cons
- Algorithmic lending can be highly risky
- Lending platforms are prone to attacks
Best Platforms for Earning Stablecoin Interest
Now that you know more about the different approaches to earning stablecoin interest, let's dive into the best platforms to earn passive income on stablecoins.
1. Nexo: Best Platform for Stablecoin Savings Accounts
Nexo is our top choice for earning interest on stablecoins in 2026. It recently returned to the U.S. market and offers one of the best crypto savings accounts in the industry. Nexo's savings account is beginner-friendly and safe, with up to 16% APY on USDT balances. That's the highest potential interest rate we've seen for any major crypto savings account.
Nexo offers both flexible and fixed-term staking for popular stablecoins, including USDT, USDC, DAI, TUSD, USDP, and PAXG. You can choose from 1, 3, or 12-month terms for fixed staking and easily adjust your term in response to market changes, helping you maintain agility while maximizing yield.
You can buy crypto directly through Nexo, so it's also a great choice if you don't already own stablecoins to deposit. The platform requires a minimum account balance of $5,000 to start earning. You get unlimited free crypto withdrawals on 15+ networks and one free fiat withdrawal per month, so that fees won't eat into your earnings.
Pros
- Earn up to 16% APY on USDT
- Supports fixed and flexible savings terms
- Earn on all major stablecoins, including TUSD and PAXG
- One free fiat withdrawal per month is included
Cons
- Requires a $5,000 account balance to earn yield
- Doesn't support crypto staking
2. Best Wallet: Best Choice for Stablecoin Staking
Best Wallet is another excellent platform for earning interest on crypto, and it's ideal if you want to stake stablecoins for higher yields. Best Wallet features a built-in staking platform, allowing you to transfer tokens between your wallet and validator nodes with just a tap. All staking is flexible, allowing you to unstake your tokens at any time as market conditions change.
Best Wallet supports all major stablecoins along with tens of thousands of other cryptos across more than 60 blockchains. You can hold USDT on Ethereum or Tron, for example, or keep DAI, USDC, PYUSD, USD1, and more. Best Wallet uses cutting-edge security features to safeguard your stablecoins as they earn interest, and the platform has never experienced a hack.
You can also buy stablecoins directly through Best Wallet to increase your holdings and earn more interest. The built-in onramp accepts credit and debit cards, PayPal, Venmo, and bank transfers. Best of all, Best Wallet doesn't require Know Your Customer (KYC) checks so that you can earn interest on stablecoins completely anonymously.
Pros
- Stake major stablecoins without leaving your wallet
- Fully flexible staking periods
- Industry-leading wallet security
- Buy and stake stablecoins completely anonymously
Cons
- Doesn't offer savings accounts or yield farming
- Staking is available for a limited selection of tokens
3. Binance: Centralized Exchange with Multiple Ways to Earn Interest
Binance is the world's largest centralized crypto exchange and a hub for earning yield on stablecoins. It offers multiple ways to earn, including crypto savings accounts, staking, and a yield farming platform. Rates for USDT range from 0.4% to 10.4% APY in crypto savings accounts and from 0.4% to 98% APY for yield farming with BTC and USDT.
Binance's range of options can be slightly confusing for beginners, so it's best for more experienced crypto users who understand the risk involved in different types of interest schemes. Both fixed and flexible savings terms are available, although the range of fixed terms for stablecoins is limited to 30 days.
You can buy stablecoins directly through Binance, making it easy to start earning interest. Note that to qualify for the highest rates, you'll need to hold the exchange's native BNB crypto token.
Pros
- Offers savings, staking, and yield farming
- Very high rates for USDT yield farming pairs
- Above-average APYs for crypto savings accounts
- Supports buying popular stablecoins
Cons
- Complex user interface
- Must hold BNB to qualify for the highest interest rates
4. Crypto.com: Best APYs for Large Stablecoin Balances
Crypto.com offers some of the highest APYs in the industry for stablecoin savings accounts and staking, but with a catch. To qualify for the maximum rates on this platform, you must level up in the exchange's loyalty tiers. The highest rates - up to 4.2% APY for USDT and USDC - are available only to Private members, who must lock up at least $50,000 worth of Crypto.com's CRO token for a minimum of 12 months.
You can qualify for moderate rates as a Plus or Pro member, which requires a monthly subscription fee. However, to make any of these plans worthwhile, you'll need to have a relatively large stablecoin balance. We recommend Crypto.com for investors with at least $10,000 and ideally $25,000 or more in stablecoin balances to earn interest on.
The good news is that there are many other ways to earn through Crypto.com once you join these programs. You'll get crypto back on the Crypto.com credit card, for instance, and get 5% APY on any fiat held in your account. It's a unique blend of traditional banking and stablecoin earning opportunities.
Pros
- Tiered savings rates available
- Very high APYs for Private members
- Earn interest on fiat balances
- User-friendly platform
Cons
- Private membership requires $50,000 lock-up
- Plus and Pro tiers require a monthly subscription
5. Bybit: User-friendly Exchange with Savings, Staking, and Yield Farming
Bybit is another centralized exchange offering a range of interest-earning products, including savings accounts, staking opportunities, and yield farming strategies. You can earn up to 7.6% APY on flexible USDT savings or 8.12% on flexible USDC savings, which makes the rates highly competitive.
What really sets Bybit apart is that the platform offers many opportunities to boost your interest rates. For example, new users can earn up to 555% APY for a limited time by locking their USDT for a period of two days. VIPs can earn up to 25% with a five-day lockup. These boosts usually don't last long, but they can significantly increase your overall earnings.
The challenge with Bybit is that the platform is moderately complex, and you have to always be on the lookout for these opportunities. You may also be required to hold the exchange's native BIT token to qualify for some boosted APY offers.
Pros
- Very high flexible savings rates
- Numerous offers for boosted APYs
- VIP program to increase yields
- Offers several yield farming strategies
Cons
- Complex user interface
- Boosted APY opportunities are short-lived
How Does Earning Interest on Stablecoins Work?
Earning interest on stablecoins works differently depending on the type of platform you use.
For crypto savings accounts and lending platforms, the interest you earn comes from interest payments borrowers make on their loans. Crypto savings accounts are centralized, so the platform lends out your tokens and takes a cut of the interest, but passes the rest onto you. Lending platforms can be centralized or decentralized, and follow a similar pattern of taking a cut of the interest borrowers pay and passing the rest of the interest onto you.
For crypto staking platforms, your stablecoins are used as collateral for validating transactions. The validator receives a reward for verifying transactions and passes a portion of that reward onto you.
For yield farming platforms, you commit stablecoins to liquidity pools to enable smooth trading. The decentralized exchange or DeFi platform charges traders a fee and passes a portion of that fee onto liquidity providers.
Can You Earn More Interest on Stablecoins Than on Fiat at a Bank?
Interest rates for stablecoins vary widely depending on what approach you take to earning interest. We'll compare crypto savings accounts with bank savings accounts, as these are the most similar products with comparable levels of risk. Keep in mind that bank savings accounts are FDIC-insured, while crypto savings accounts are not.
Crypto savings accounts can offer anywhere from 0.25%-14% APY on major stablecoins, depending on factors like which token you stake, whether you choose a fixed or flexible term, and whether you hold the platform's native token. Meanwhile, banks offer 0.10%-5% APY for cash deposits.
So, you can earn more interest on stablecoins than on fiat in a bank account, but it's not a guarantee. If you want to earn more, you will need to choose a high-yield platform and be prepared to commit to a fixed savings term (which does mean your money is locked up and cannot be extracted quickly or without penalties). You may also need to hold your platform's native token or maintain a high balance to maximize your yield.
A Closer Look at Stablecoin Interest Rates
Since stablecoin interest rates can vary significantly, it's crucial to compare rates across different platforms. Here are the rates for the three biggest stablecoins at Nexo, Binance, and Crypto.com.
| USDT | USDC | DAI | |
| Nexo | 13% APY flexible, 16% APY fixed | 12% APY flexible, 14% APY fixed | 12% APY flexible, 14% APY fixed |
| Binance | 10.4% APY flexible | 7.75% APY flexible | 2.09% APY flexible |
| Crypto.com | 1% APY flexible, 4.2% APY fixed | 1% APY flexible, 4.2% APY fixed | 5% APY fixed, 0.25% APY flexible |
Note that these figures represent the maximum interest rate available on each platform. To qualify for these rates, you will need to hold the platforms' native NEXO, BNB, or CRO tokens, respectively.
Stablecoin Interest vs. Crypto Interest: Rates and Other Considerations
Many of the top crypto savings platforms accept both stablecoins and other cryptocurrencies, such as Bitcoin, Ethereum, major altcoins, and even some meme coins. So, it's worth comparing rates for different types of tokens.
In general, interest rates for stablecoins and other cryptocurrencies are comparable. Stablecoins tend to earn slightly higher rates since they are in higher demand for lending.
That said, you can earn higher rates for crypto staking with altcoins instead of stablecoins. That's because stablecoins often need to be converted into blockchain-native tokens, such as ETH or SOL, before they can be staked. Native staking tokens save on conversion costs, allowing you to receive higher yields.
It's also important to remember the benefits of earning interest on stablecoins compared to altcoins. Because stablecoins maintain a stable value, you do not have to worry about price volatility impacting your total return. Altcoins can fall in price, resulting in a negative return even though you're earning interest (you can end up with more of something that is worth less).
Stablecoins also offer more options for flexible savings terms and fixed-term investments with varying lock-up periods. That can be helpful if you want to maintain liquidity in your crypto holdings while maximizing yield.
Potential Risks of Earning Interest on Stablecoins
While earning interest on stablecoins through savings accounts and staking is relatively safe, there are some risks to be aware of.
- Platform risk: If your savings account or staking platform goes bankrupt, your deposits may be at risk. Crypto deposits are not FDIC insured, and you must transfer custody of your tokens to earn interest on most platforms.
- De-pegging risk: Stablecoins can lose their price stability, or "lose the peg," in rare circumstances, potentially resulting in a loss of value for your deposits.
- Liquidity risk: Fixed-term savings or staking periods require you to lock up your tokens, so you can't sell them or use them for other purposes without incurring a penalty.
Best Stablecoins for Earning Yield
All of the most popular stablecoins can be used to earn interest. This includes tokens such as USDT, USDC, and DAI. Smaller stablecoins, such as USD1, can be used to earn interest on specific platforms, but they're not as widely accepted for crypto savings accounts or crypto staking. Yield farming platforms primarily offer APY on USDT and USDC.
It's crucial to compare platforms when choosing where to earn yield. Rates vary widely for the same token, so shopping around can help you maximize your potential earnings.
Conclusion: Start Earning Stablecoin Interest Today at Nexo
Earning interest on stablecoins is one of the safest and most reliable ways to generate a profit from your crypto holdings. With Nexo, you can earn up to 16% APY on USDT and up to 14% APY on USDC and DAI. It's easy to get started and gives you the flexibility you need to stay liquid in a fast-moving crypto market.
Sign up for Nexo today to earn passive income on your stablecoins.
Visit NexoFAQs
Can I earn interest on my stablecoins?
Yes, you can earn interest on stablecoins like USDT, USDC, DAI, PYUSD, and more. To get started, you need a platform like Nexo that offers stablecoin savings accounts or a platform like Best Wallet that offers stablecoin staking.
What is the best platform to earn stablecoin interest?
The best platform to earn yield on stablecoins is Nexo. Nexo’s crypto savings accounts are safe and easy to use, and you can earn up to 16% APY on USDT and up to 14% APY on USDC. Nexo offers both fixed and flexible savings terms so you can stay nimble as market conditions change.
Where can I earn interest from USDC?
You can earn interest on USDC tokens at platforms like Nexo, Best Wallet, Binance, Crypto.com, and ByBit. Nexo offers up to 14% APY on USDC and lets you choose between fixed and flexible savings terms.
Can I earn interest on Tether?
Yes, you can earn interest on Tether (USDT) at platforms like Nexo, Best Wallet, and Binance. Nexo offers up to 16% APY in its USDT savings accounts and Binance offers up to 10.4% APY. You can also earn interest on Tether through crypto staking or yield farming.
References
- Nexo to reenter US market after two-year regulatory exit and $45 million settlement (The Block)
- Aave Hack 2023 (CoinsBench.com)
- National Rates and Rate Caps (Federal Deposit Insurance Corporation)
- FDIC Makes Clear That It Does Not Insure Crypto Exchanges (Cadwalader)
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