How Do I Earn Interest or a Yield When Holding Stablecoins?

How Yield Turns Stablecoins into Productive Assets

Stablecoins are cryptocurrencies designed to hold steady in value, usually tied to the U.S. dollar. Unlike Bitcoin or Ethereum, they are not built to swing with the market. But stablecoins are not only for storage. Like money in a savings account, they can also earn interest, often called yield.

People put stablecoins to work because it makes sense to earn on money that would otherwise sit idle. Yield makes them income-generating while keeping funds resistant to the swings of the wider crypto market. This way, holders can grow their balance without taking on market risk.

The Main Ways People Earn Yield

There are several common ways that users earn interest on stablecoins, summarized into three groups:

Centralized Platforms

Some exchanges and custodial providers let users deposit stablecoins and earn interest. The setup feels familiar and similar to a bank savings program, but this puts trust in the hands of a centralized entity and does not come without risk.

DeFi Protocols

DeFi unlocks multiple ways to earn yield on stablecoins. The simplest option is lending markets like Aave, where users supply stablecoins to lending pools and can borrow against their collateral. More advanced strategies include providing liquidity to decentralized exchanges, which often requires active position management to maximize returns. Finally, users can stake a variety of assets to earn validator rewards.

Onchain Treasuries and RWA Strategies

Other platforms place stablecoins into the U.S. Treasuries or similar real-world assets and then share the returns with token holders. These approaches combine the steadiness of traditional finance with the transparency of blockchain rails.

Yield Does Not Come Risk Free

Each way of earning yield involves varying levels of risk. Smart contracts may have flaws that can be exploited. Centralized platforms can fail or freeze access to deposits. Handing assets to another party introduces counterparty risk. Yields also change with the market, so the return you see one month may look very different the next.

How Dynamic Makes Generating Yield on Stablecoins Simple

Dynamic makes earning yield on stablecoins easier to scale in multiple ways. In addition to offering built-in one-click yield integrations, we give platforms the tools to design reliable earning products and give users confidence that their stablecoins are working for them in a secure environment.

Our Server Wallets allow developers to build yield strategies directly into applications, while our TSS-MPC Key Management infrastructure ensures recovery, security, and access across devices. Beyond just integrations, Dynamic provides the infrastructure that helps platforms stay compliant, manage risk, and ship yield products faster.

The result is a developer-first foundation for building scalable, yield-generating experiences. Whether for DeFi protocols, consumer apps, or enterprise platforms, Dynamic makes it easy to give users more reasons to keep their capital working in your ecosystem.