{"id":129700,"date":"2025-05-21T12:15:56","date_gmt":"2025-05-21T12:15:56","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129700"},"modified":"2025-05-21T12:15:56","modified_gmt":"2025-05-21T12:15:56","slug":"yield-bearing-stablecoins-surge-to-11b-now-4-5-of-market-report","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129700","title":{"rendered":"Yield-bearing stablecoins surge to $11B, now 4.5% of market: Report"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsYield-bearing stablecoins have soared to $11 billion in circulation, representing 4.5% of the total stablecoin market, a steep climb from just $1.5 billion and a 1% market share at the start of 2024.<br \/>\nOne of the biggest winners is Pendle, a decentralized protocol that enables users to lock in fixed yields or speculate on variable interest rates. Pendle now accounts for 30% of all yield-bearing stablecoin total value locked (TVL), roughly $3 billion, the firm said in a report shared with Cointelegraph.\u00a0\u00a0<br \/>\nPendle noted that stablecoins make up 83% of its $4 billion total value locked, a sharp rise from less than 20% just a year ago. In contrast, assets such as Ether (ETH), which historically contributed 80%\u201390% of Pendle\u2019s TVL, have shrunk to less than 10%.<br \/>\nTraditional stablecoins like USDt (USDT) and USDC (USDC) do not pass on interest to holders. With over $200 billion in circulation and US Federal Reserve interest rates at 4.3%, Pendle estimates that stablecoin holders are missing out on more than $9 billion in annual yield.<br \/>\nPendle TVL share by assets. Source: PendleRelated:\u00a0How to Use tsUSDe on TON for Passive dollar Yield in 2025<br \/>\nGrowing regulatory clarity benefits stablecoins<br \/>\nThe rise in yield-bearing stablecoins comes amid increasing regulatory clarity under US President Donald Trump\u2019s administration.<br \/>\nIn February, the US Securities and Exchange Commission approved yield-bearing stablecoins as \u201ccertificates\u201d subject to securities regulation, rather than banning them. The approval allows yield-bearing stablecoins to operate under specific rules, including registration, disclosure requirements and investor protections.\u00a0\u00a0<br \/>\nProposed bills like the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) and\u00a0the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) signal a favorable direction.<br \/>\nMeanwhile, Pendle said it expects stablecoin issuance to double to $500 billion in the next 18 to 24 months. The firm also anticipates yield-bearing stablecoins to capture 15% of this market with $75 billion in issuance (7x growth from $11 billion).<br \/>\nYield-bearing stablecoins issuance. Source: PendleRelated:\u00a0PayPal to offer 3.7% yield on stablecoin balances: Report<br \/>\nPendle shifts focus to yield market<br \/>\nInitially focused on airdrop farming, Pendle has shifted toward serving as an infrastructure layer for decentralized finance yield markets.<br \/>\nEthena\u2019s USDe stablecoin currently accounts for about 75% of Pendle\u2019s stablecoin TVL. However, newer entrants such as Open Eden, Reserve and Falcon have increased the share of non-USDe assets from 1% to 26% over the past year.<br \/>\nPendle is also expanding beyond Ethereum, with plans to support networks like Solana and to integrate with Aave and Ethena\u2019s upcoming Converge blockchain.<br \/>\nInterest in\u00a0yield-generating strategies within the cryptocurrency sector\u00a0has surged in recent years, driven by both retail and institutional investors seeking to maximize returns on their digital assets.<br \/>\nOn May 19, Franklin, a hybrid cash and crypto payroll provider, announced the launch of Payroll Treasury Yield, which uses blockchain lending protocols to help firms earn returns on payroll funds.<br \/>\nMagazine: NBA star Tristan Thompson misses $32B in Bitcoin by taking $82M contract in cash<a href=\"https:\/\/cointelegraph.com\/news\/yield-bearing-stablecoins-hit-11b-pendle-dominates-growth?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsYield-bearing stablecoins have soared to $11 billion in circulation, representing 4.5% of the total stablecoin market, a steep climb from just $1.5 billion and a 1% market share&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129700"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129700"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129700\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129700"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}