List of Top Yield-Bearing Stablecoins by Market Capitalization (2025 Edition)

Yield-bearing stablecoins are a fast-emerging class of crypto assets that not only preserve their peg to fiat currencies but also offer passive yield, typically via DeFi protocols, staking, or real-world asset backing. As of mid-2025, these tokens have rapidly scaled in popularity, offering users a way to earn interest while mitigating volatility.

What once began as niche financial instruments in DeFi ecosystems has now matured into a substantial market. The total capitalization of yield-bearing stablecoins has surged from around US$1.5 billion in early 2024 to over US$11 billion by mid-2025, representing 4–5% of the broader stablecoin market.

What Is a Yield-Bearing Stablecoin?

Yield-bearing stablecoins are a new class of digital assets that combine the stability of traditional fiat-pegged cryptocurrencies with the added advantage of passive income. These tokens are typically pegged 1:1 to a fiat currency, most commonly the U.S. dollar, ensuring minimal price volatility. What sets them apart from regular stablecoins like USDC or USDT is their ability to generate returns for holders, usually without requiring users to lock their tokens in separate yield protocols or staking contracts.

These coins provide a seamless and efficient way to earn interest simply by holding the asset. The yield is built into the token’s protocol or backed by underlying interest-generating strategies. This innovation allows users to keep their funds liquid while earning income, making these tokens especially attractive to long-term holders, institutions, and treasury managers in the decentralized finance (DeFi) ecosystem.

There are two main categories of yield-bearing stablecoins:

• DeFi-native tokens: These are powered by decentralized finance protocols and earn yield through mechanisms like auto-staking, algorithmic lending, liquidity provision, or delta-neutral strategies. The yield is typically distributed automatically and can vary based on market demand, platform usage, and protocol fees.
• Asset-backed options: These tokens are collateralized by real-world assets, such as U.S. Treasury bills, money market funds, or bank deposits. They earn yield by passing on the interest accrued from these assets directly to holders. These stablecoins are often more transparent and regulated, appealing to investors looking for lower-risk, fiat-connected returns.

Instead of letting capital sit idle in a wallet, yield-bearing stablecoins allow users to earn a passive return while maintaining the flexibility and low volatility of fiat-pegged digital assets. This hybrid approach is helping bridge traditional finance with the dynamic world of decentralized digital economies.

Also Read: Mitigating Crypto’s Volatility: The Role of Stablecoins

How Yield-Mechanisms Differ

Yield-bearing stablecoins fall into three main categories based on how they generate returns for holders. These mechanisms shape their performance, user appeal, and risk exposure. The table below offers a breakdown of the most common types of yield models found in today’s market.

Each type of yield model comes with its own set of trade-offs, balancing return potential against exposure to volatility, regulation, or operational complexity. Understanding these mechanisms is essential when selecting a stablecoin that aligns with your financial goals and risk appetite.

List of Top Yield-Bearing Stablecoins by Market Capitalization in 2025

Here are some of the top-performing stablecoins making waves in the yield-bearing space for 2025:

• HLUSD – 15% APY with on-chain utility on the HeLa blockchain
• sUSDe (Ethena) – Synthetic stablecoin backed by derivatives and delta-neutral strategies
• sUSDS – Staking-powered stablecoin with deep DeFi integrations
• SyrupUSDC – Institutional lending-backed stablecoin from Maple Finance
• USDY (Ondo) – Yield from U.S. Treasuries and money market funds
• OpenDollar (USDO) – Hybrid DeFi strategies and tokenized debt
• Noble Dollar (USDN) – Validator and staking-focused yield model
• SDEUSD (Elixir) – Validator and LP-backed stablecoin within the Elixir ecosystem
• SLVLUSD – Automated yield through DeFi strategy rotation
• SFRXUSD (Staked Frax USD) – Validator-yielded version of the Frax stablecoin

Looking to earn passive income while keeping your capital stable in 2025? Here’s a deep dive into the Top 10 Yield-Bearing Stablecoins that are transforming how users approach low-risk crypto income. Whether you want high APY, cross-chain flexibility, or real-world asset exposure, these stablecoins offer a variety of yield mechanisms and risk levels to match your portfolio needs.

1. HLUSD (HeLa USD)

HLUSD is a native yield-bearing stablecoin built on the HeLa blockchain. It offers an attractive 15% APY, making it one of the most competitive stablecoin yields available today. Unlike many stablecoins that are only used for trading or DeFi liquidity, HLUSD has real functional utility within the HeLa ecosystem—used for gas fees, staking, and other on-chain activities. 

Yield is generated through StableHODL, a multi-chain platform that also supports USDT and USDC staking across BNB Chain, Polygon, Ethereum, and HeLa. HLUSD’s combination of high yield, on-chain utility, and decentralized support makes it a standout option for both passive income seekers and ecosystem users.

2. Ethena Staked USDe (sUSDe)

Ethena’s Staked USDe (sUSDe) leads the yield-bearing stablecoin market by total market cap. It offers a mix of synthetic asset backing and on-chain yield generation through staking mechanisms. sUSDe is popular for its integration with major DeFi protocols and access to high liquidity pools across multiple chains. 

The yield is typically sourced from a mix of delta-neutral strategies, derivatives, and protocol fees. For users seeking exposure to a scalable synthetic stablecoin with proven yield, sUSDe remains a top-tier choice.

3. sUSDS (Staked sUSDS)

sUSDS is a stablecoin that offers yield through protocol-native staking mechanisms. With over $2 billion in market cap, it’s widely used in decentralized ecosystems that prioritize efficient capital deployment. sUSDS yield is generally derived from lending markets or liquidity provision strategies. 

The token is part of a growing trend in synthetic USD derivatives that allow users to maintain stability while earning passive returns. sUSDS is ideal for long-term DeFi users looking to optimize returns without sacrificing dollar-peg reliability.

4. SyrupUSDC

SyrupUSDC is issued by Maple Finance and focuses on generating yield through institutional-grade lending. Unlike volatile DeFi protocols, SyrupUSDC channels user deposits into overcollateralized loans to vetted borrowers. 

This makes it more predictable and secure for conservative crypto investors. Yield is typically fixed or optimized through credit delegation, and Maple’s reputation gives SyrupUSDC a strong trust factor. The token is often seen as a “safe yield” option in the high-risk DeFi landscape.

5. USDY (Ondo US Dollar Yield)

USDY is issued by Ondo Finance and backed by real-world assets such as U.S. Treasuries and money market instruments. Yield is generated from traditional finance vehicles and distributed to token holders on-chain. It’s designed for users who want crypto-native returns without the volatility of DeFi. 

Ondo has made USDY accessible on Ethereum and other major chains, helping bridge TradFi and DeFi. This makes it one of the safest yield-bearing stablecoins for those prioritizing capital preservation.

6. OpenDollar (USDO)

OpenDollar offers a hybrid approach to yield generation by combining DeFi strategies, tokenized debt, and liquidity pools. USDO is algorithmically managed and uses basket strategies to ensure peg stability while generating yield. It offers more flexibility than strictly asset-backed tokens. 

OpenDollar’s platform also includes real-time risk dashboards and smart contract monitoring to maintain transparency. This token is for users comfortable with slightly higher complexity in exchange for dynamic yield options.

7. Noble Dollar (USDN)

Noble Dollar (USDN) aims to be a yield-bearing alternative to traditional stablecoins through staking-backed issuance. It’s integrated with selected DeFi apps that offer predictable yield routes via validators and node-based income. 

The project behind USDN emphasizes on-chain sustainability and permissionless access. While its market cap is smaller, it appeals to users who want a simple yet effective staking stablecoin. USDN’s yield mechanism is usually fixed or algorithmically adjusted based on network conditions.

8. Elixir Staked deUSD (SDEUSD)

SDEUSD is part of the Elixir ecosystem and leverages validator rewards and liquidity pool strategies to deliver yield. It’s designed to be a decentralized, permissionless alternative to custodial stablecoins. 

Elixir focuses on modular infrastructure, enabling SDEUSD to integrate easily across DeFi platforms. The token maintains its peg using multiple layers of liquidity and on-chain rebalancing. It is suitable for users looking for decentralized stability and moderate returns.

9. Staked Level USD (SLVLUSD)

SLVLUSD focuses on yield generation via advanced liquidity farming and lending aggregators. It’s engineered for users who want automated yield optimization without needing to micromanage funds. 

SLVLUSD regularly rotates strategies based on real-time analytics to maintain optimal returns. It works across several DeFi protocols and is supported by a DAO treasury buffer for peg security. The token caters to high-volume users seeking automation and consistent yield.

10. Staked Frax USD (sFRAX or SFRXUSD)

Staked Frax USD is the yield-bearing version of the popular algorithmic stablecoin FRAX. Yield is generated via validators or other staked assets held by the Frax protocol. This version provides a balance between stablecoin utility and earning power without venturing too far into complex derivatives. 

As part of the larger Frax ecosystem, it benefits from strong community support and liquidity. It’s a good starting point for users entering yield-bearing stablecoins through familiar platforms.

As stablecoins evolve beyond just trading pairs, the yield-bearing category offers new ways to earn while staying in dollar-pegged assets. HLUSD leads the charge with a unique blend of utility and high APY, while legacy players like Ethena and Ondo provide structured, lower-risk options. Each token comes with its own blend of opportunity and risk, whether it’s platform reliance, collateral type, or yield mechanism.

For investors in 2025, yield-bearing stablecoins now serve as a core portfolio component, not just a parking space. Choosing the right one depends on your risk appetite, chain preference, and liquidity needs. Always research the issuing platform, track APY changes, and consider where these stablecoins fit into your overall financial strategy.

Also Read: Top 24 Stablecoins for Low-Risk Crypto Portfolios in 2025

Risks & Considerations

While these tokens can enhance returns for holders, they also introduce layers of complexity and risk not typically found in standard stablecoins. Because they are tied to active financial strategies or market instruments, users must be aware of both the visible and underlying exposures. Below are the key risks to consider:

Smart Contract Risk: Yield-bearing stablecoins typically rely on smart contracts to execute and manage interest-generating strategies. These contracts are susceptible to bugs, coding errors, and malicious exploits. A flaw in the code could lead to lost funds or system failures, with little to no recourse for users due to the decentralized nature of many protocols.

• Platform Exposure: Many of these tokens depend on underlying DeFi platforms for lending, staking, or liquidity provision. If any of these platforms experience technical failures, security breaches, or governance mishaps, the stablecoin’s ability to generate yield or maintain its peg could be compromised.
• Macro & Regulatory Risk: For stablecoins backed by real-world financial instruments, macroeconomic factors such as interest rate changes can impact returns. Central bank policy shifts, like rate cuts, may significantly reduce yields. Additionally, regulatory scrutiny around compliance, asset backing, and security classification may result in limitations or legal challenges for issuers.
• Liquidity & Adoption Risk: Unlike widely adopted stablecoins, many yield-bearing variants are still gaining traction. Their smaller market share can result in lower trading volumes, less exchange support, and wider bid-ask spreads. In times of market stress, these conditions may amplify price instability and hinder timely redemptions or conversions.
• Governance & Transparency Risk: Governance structures behind these tokens can vary from fully decentralized DAOs to centralized corporate teams. A lack of clear oversight, opaque reserve disclosures, or sudden policy changes can impact user confidence. Inadequate communication or decision-making may also affect the coin’s ability to hold its peg and distribute yield effectively.

In summary, while yield-bearing stablecoins present a compelling financial tool, they are not risk-free. Users must weigh the benefits of passive income against the backdrop of technical, operational, and systemic vulnerabilities. Careful research and a clear understanding of how each token functions are essential for making informed and secure investment decisions.

Conclusion

Yield-bearing stablecoins represent a powerful evolution in the landscape of digital finance. By combining the price stability of fiat-pegged tokens with the opportunity to earn passive income, they offer a compelling alternative to both traditional savings products and volatile crypto assets. This hybrid functionality allows users to preserve value while generating returns, making them attractive to retail investors, institutions, and decentralized applications alike.

As the market matures, yield-bearing stablecoins are gaining broader adoption, with total capitalization now representing a notable portion of the overall stablecoin ecosystem. However, with innovation comes complexity. Evaluating these assets requires a clear understanding of their yield mechanisms, associated risks, and the underlying technologies or strategies involved. As with any financial tool, informed decision-making, due diligence, and risk management are essential to leveraging their full potential in a dynamic and fast-moving environment.