If you’re wondering how to earn interest on stablecoins, the good news is it’s easier than you might think. Right now, billions of dollars in idle $USDT, $USDC, and $DAI are sitting in wallets without generating yield. That’s the ‘before’ picture: assets parked, doing nothing.
Now, imagine the ‘after.’ Those same stablecoins compounding interest daily, paying you anywhere from 4% to 16% annually, depending on the platform you choose. With the right setup, you can turn a passive stash of stablecoins into a consistent income stream.
In this guide, we’ll cover exactly how to earn daily interest on stablecoins, how to calculate your returns, and the steps to get started.
Our top pick is Nexo, thanks to its high rates (up to 16% APY), daily payouts, and a long track record of reliable service.
Overview – How to Earn Interest on Stablecoins in 5 Steps
- Create an account: Visit the Nexo website and sign up with your email and password.
- Verify your identity: Upload your ID and complete KYC to unlock interest-saving features.
- Deposit funds: Add $USDT, $USDC, or $DAI by wallet transfer, bank transfer, or card purchase.
- Opt in to earn interest: If you’re outside the EEA, activate daily interest in your account settings.
- Start earning: Keep assets in your Savings Wallet and receive daily payouts.
Best Places to Earn Interest on Your Stablecoins in 2025
Some platforms flexibility, while others offer higher yields if you lock funds or stake their native token. Below, we’ve listed the leading options for this year.
| Nexo | Flexible savings with up to 16% APY on stablecoins |
| Binance | The broadest range of stablecoins and earn products |
| OKX | Mix of simple earn and advanced yield products up to 10% |
| Bybit | Short lock-up periods with tiered rates on $USDC and $USDT |
| KuCoin | Peer-to-peer lending with flexible redemptions |
| MEXC | Aggressive promotions and boosted short-term APYs |
The standout choice for earning interest on stablecoins is Nexo. It consistently offers some of the highest rates on $USDC, $USDT, and $DAI – up to 16% APY if you meet loyalty tier conditions. However, inside the European Economic Area (EEA), $USDC is the only stablecoin available for staking.
Beyond the headline numbers, Nexo has been running since 2018, manages over $11B in assets, and pays out interest daily, which makes it one of the most trusted options in the Centralized Finance (CeFi) space.
That said, depending on your situation, other platforms may be a better fit. Binance, for example, is ideal if you want a larger range of stablecoins to earn from, alongside advanced options like Dual Investment.
OKX appeals to those who want simple earn tools and higher-yield structured products. And Bybit is great if you seek shorter lock-up periods, though yields are often tiered (interest rate changes based on amount staked).
How Does Stablecoin Interest Work?
For those looking for the best way to earn interest on stablecoins, the mechanics aren’t too different from traditional savings, but with a crypto twist. Instead of a bank lending out your deposits, stablecoin interest usually comes from lending protocols, staking pools, or liquidity provision on exchanges. Let’s break it down.
Lending
When you deposit stablecoins into a platform like Nexo or Binance Earn, they often lend those assets to margin traders or institutions. Those borrowers pay interest on their loans, and you earn a cut of it. The idea is similar to how banks use deposits to fund loans, except here, it’s happening in crypto.
Staking
Some stablecoins, like $DAI in MakerDAO’s ecosystem, can be staked in governance contracts. Here, you’re helping secure the protocol or maintain its peg – the mechanism that keeps a stablecoin worth $1. In exchange, you earn yield from the system’s stability fees or incentives.
Liquidity provision
If you provide liquidity on a Decentralized Exchange (DEX), say, Uniswap or Curve, you’re essentially depositing your stablecoins into a shared pool that traders use when swapping tokens. In return, you earn a share of the trading fees, plus, sometimes, extra reward tokens. With stablecoin-only pools (like $USDC/$DAI), the risk of impermanent loss is minimal, which makes them a popular way to earn steady yield.
Unlike volatile coins like $BTC or $ETH, stablecoins are pegged to fiat or commodities (usually the USD or gold). This means you don’t need to worry about price swings eating your yield. Your risk comes from the platform itself (custody risk, smart contract risk, etc.), not from the coin’s market value.
How Much Interest Can Your Earn on Stablecoins?
Rates vary widely depending on the platform, the stablecoin, and whether you lock funds or keep them flexible. The realistic range is about 3% to 16% APY. Anything far above that usually involves a higher risk, so be careful.
Some examples from our top platforms:
- Nexo: Up to 14% APY on $USDC and up to 16% on $USDT, with these higher rates if you hold the $NEXO token or choose fixed terms.
- Binance Earn: Typically up to 11%, depending on the coin and lock-up period.
- Bybit / OKX / KuCoin: Often advertise 4–10% for short-term promotions, but the baseline is closer to 2–8%.
Your rate depends on a few key factors. Locking funds for a fixed period (say, 30 or 90 days) usually pays more than keeping them flexible, since the platform can rely on your liquidity.
Popular coins like $USDT and $USDC tend to generate higher rates than smaller stablecoins such as $FRAX, because they’re in greater demand.
Finally, some platforms boost yields if you also hold or stake their native token, effectively rewarding loyalty with a better return.
APY vs. APR – What’s the Difference?
Both Annual Percentage Yield (APY) and Annual Percentage Rate (APR) tell you how much you’ll earn, but they calculate it differently.
- APR = simple interest. It doesn’t account for compounding. If a platform says 10% APR, depositing $1,000 would give you $100 after a year.
- APY = compounded interest. It assumes you’re reinvesting your earnings. If that same $1,000 earned 10% APY compounded monthly, you’d finish with about $104.71 – a bit more because your interest earns interest.
In short, APR is easier to understand and predict, but it ignores compounding, so your earnings are lower than with APY. APY reflects your true return because it includes compounding, though it can be slightly harder to understand.
The difference may seem small, but over multiple years or large deposits, the gap adds up. Always check which metric the platform is using so you don’t overestimate (or underestimate) your returns.
How to Calculate Your Actual Returns
Calculating returns on stablecoins is simple once you know the difference between APY and APR and the following formulas.
APR (no compounding):
Final Value=Principal 1+APR Time12
For example, if you deposit $1,000 at 10% APR for one year, you’ll end up with $1,100.
APY (with compounding):
Final Value=Principal 1+Ratennt
Where n is the number of compounding periods per year.
So with $1,000 at 10% APY, compounded monthly (n=12), after one year you’d have ~$1,104.71.
Step-by-Step Example
Let’s say you deposit $2,000 in $USDC on a platform offering 8% APY, compounded daily.
The formula is:
Final Value=Principal 1+Ratennt
- Principal = 2,000
- Rate = 0.08 (8%)
- n = 365 (daily compounding)
- t = 1 year
Final Value=2000 1+0.083653651
Final Value2000 1.08328 = 2,166.56
So your balance after one year is ~$2166.56. That’s about $6.56 more than the flat 8% APY ($2,160) because compounding adds a bit of extra growth.
Common Calculation Mistakes to Avoid
- Ignoring tiered rates: Some platforms pay higher yield only up to a limit (e.g., 10% on the first $10K, 5% after that).
- Using annual rates for short periods: You won’t earn the full APR/APY if you only deposit for a few months.
- Neglecting fees: Withdrawal, network (gas), and even hidden spread fees reduce your real return.
- Assuming APY = APR: APY compounds, APR doesn’t. Always check which is offered.
- Not reinvesting earned interest: If the platform pays out interest to your wallet instead of auto-compounding, your effective return will be lower than the quoted APY.
- Forgetting rate changes: Platforms may adjust yields over time, so today’s 10% might not last all year.
- Ignoring compounding frequency: Daily compounding vs. monthly compounding can make a noticeable difference over time, especially on large deposits.
How to Earn Interest on Stablecoins – Step-by-Step Guide
Getting started and earning interest on stablecoins is much easier than most people think. To show you exactly how it works, we’ll be using our top pick, Nexo, as an example.
Follow these simple steps:
Step 1: Register an Account
Visit the official Nexo website and click ‘Sign Up.’
Enter your email, create a password, and confirm the verification code sent to your email inbox. You can also sign up quickly with your Google or Apple account if you prefer.
Step 2: Verify Your Identity
To comply with regulations and unlock interest-earning features, you’ll need to complete Know Your Customer (KYC) verification.
This involves uploading a photo ID and confirming your personal details. Verification is typically approved within minutes to a few hours.
Step 3: Top Up Funds
Deposit stablecoins like $USDT, $USDC, or $DAI into your Nexo wallet. You can transfer them from another wallet or buy crypto directly with a credit/debit card using fiat (EUR/GBP/USD).
You must fund your account with over $5K worth of assets to unlock all features and products, along with the highest interest.
Step 4: Opt In to Earn Interest
If you’re outside the EEA, you’ll need to opt in to activate daily interest.
On desktop, go to ‘Profile’ > ‘Security & Settings’ > ‘Daily Interest.’ On mobile, open the ‘Savings Hub,’ tap ‘Earn Daily Interest,’ and agree to the terms.
Start 5: Start Earning Interest on Stablecoins
Only funds you hold in the ‘Savings Wallet’ generate yield. Check your balances via the Wallet icon on the dashboard and transfer assets there if needed.
Once your funds are in the ‘Savings Wallet’ and interest earning is activated, you’re set. Nexo will calculate your rewards daily and credit them straight into your account.
You can track earnings in real time on the dashboard or let them compound quietly in the background.
Best Places to Earn Interest on Stablecoins Compared
Choosing where to earn interest on stablecoins matters just as much as the rate itself. Some platforms focus on flexible savings, while others push higher returns if you lock funds or hold their native token.
To make the decision easier, we’ve compared the leading platforms side by side.
| Platform | Max. Interest | Supported Stablecoins | Geographic Availability | Best For |
| Nexo | Up to 16% APY | $USDT, $USDC, $DAI, $TUSD, $USDP | US ✅ / EU ✅ (only $USDC) / UK ✅ | Ease of use and the highest yield |
| Binance | Up to ~11% APR | 9+, including $USDT, $USDC, $DAI, $USD1, and more | US ❌ / EU ✅ / UK ✅ | Broadest stablecoin selection and lock-up options |
| OKX | Up to 10% APY | $USDT, $USDC, $DAI | US ✅ / EU ✅ / UK ✅ | Mix of simple earn + advanced structured products |
| Bybit | Up to ~9% APY | $USDT, $USDC, $DAI, $USDE, $USDTB | US ❌ / EU ✅ / UK ✅ | Short lock-up periods and tiered rates |
| KuCoin | ~4–5% APY | $USDT, $USDC | US ❌ / EU ✅ / UK ✅ | Peer-to-peer lending, flexible redemptions |
| MEXC | Up to 13% APY (higher promos) | $USDT, $USDC | US ❌ / EU ✅ / UK ✅ | Aggressive promos, frequent short-term boosts |
Next Move: Put Your Stablecoins to Work
Stablecoins don’t have to sit idle in your wallet. By choosing the right platform and product, you can earn a steady yield – whether that’s 4% with flexible terms or up to 16% with fixed savings and loyalty perks. The key is understanding how interest works, comparing providers, and factoring in real returns after fees.
For most people, Nexo is the simplest way to get started, with high stablecoin rates, daily payouts, and a proven track record. Others like Binance, OKX, and Bybit may suit you better if you want more advanced products or are chasing short-term promos.
As always, this is not financial advice. Rates change, risks exist, and you must do your own research (DYOR) before locking up any assets.
FAQs
1. Can you make money off of stablecoins?
Yes. You can make money off stablecoins by depositing them into platforms like Nexo that pay interest, usually through lending, staking, or liquidity pools. Returns typically range from 4% to 16% annually depending on the providers, the stablecoin, and whether you lock your funds.
2. How much interest do stablecoins pay?
Stablecoin interest rates vary by platform and product. On average, you’ll see around 4%-8% for flexible savings, while fixed-term deposits or loyalty programs can push yields up to 12%-16%. Promotional offers sometimes advertise higher returns, but these are very short-lived and often carry more risk. Always compare rates, check if they’re APY or APR, and account for any fees that may reduce your real earnings.
3. Can I earn interest on USDC?
Yes. $USDC is one of the most widely supported stablecoins for earning yield. Platforms like Nexo, Binance, and OKX all offer savings products for $USDC, with rates ranging from 10% on OKX to up to 14% on Nexo. Since $USDC is backed by reserves and highly liquid, it’s often the top choice for stablecoin interest accounts.
4. What’s the best place to earn interest on stablecoins?
Nexo is often the top pick for beginners and those who want the highest yield (up to 16% APY). It also offers daily payout and a proven track record. Binance suits those wanting variety, while OKX and Bybit are good for compounding or short-term lockups. You should always compare features, risks, and availability before deciding where to park your stablecoins.
