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Stablecoins can do more than move money. Wallet users and treasuries can earn yield by deploying their stablecoin balances directly through the stablecoin issuers or by staking across trusted protocols. This section introduces the main mechanisms to generate yield, how they differ, and how they can be combined to maximize returns while keeping funds accessible and secure within the same wallet.

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Yield Strategies

There are two primary ways to earn yield from stablecoins:
  • Yield from reserves — earned from the interest generated by the stablecoin’s underlying reserves, which are typically invested in U.S. Treasury bills or equivalent cash instruments.
  • Yield from staking — earned by locking or delegating tokens to validators or protocols that generate onchain returns.
These mechanisms are not mutually exclusive — the same asset can simultaneously generate passive income from its reserves while being staked to earn additional yield.

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1. Yield from reserves

The table below compares different ways to access stablecoin-based yield, their setup requirements, and key trade-offs.
OptionDescriptionNotes
USDC, USDTNegotiate a direct revenue-sharing agreement with the stablecoin issuer.Typically limited to large partners; smaller revenue share; allows direct staking.
USDGUse a stablecoin that automatically accrues interest to holders or distributors.Easier to get started; usually requires swapping to USDC/USDT before staking or transferring out, if the recipient prefers another stable. By end of Q4 / beginning of Q1, this will be achievable via the transfer API without requiring a manual swap.
Issue your own stablecoinCreate your proprietary stablecoin backed by your own reserves.Around 10-20 bps more yield and control vs a non-standard token; higher setup costs, complexity, and slower go-to-market. Similar swapping requirements vs USDG.

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2. Yield from staking

In addition to stablecoin yield, wallets can also earn yield through staking — by delegating tokens to validators or liquidity pools. Protocols such as Aave and Morpho offer staking opportunities, and Crossmint wallets are compatible with any of them. Yield.xyz provides integrations with all top DeFi protocols, making it easy to connect your Crossmint wallets to yield-generating strategies. See our Generate Yield guide for a step-by-step integration walkthrough.

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Get Started

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