Best Stablecoin Interest Rates

Best Stablecoin Interest Rates

Robert McDougall 

November 3, 2022

Cryptocurrency

Stablecoins have become quite popular in the world of cryptocurrencies because they tend to offer the best of both worlds - instant and secure processing, as well as stable valuations of fiat currencies.

Since they are backed by a reserve asset, they tend to offer price stability, which is a great advantage over other coins. In bear markets, or sideway trending periods, many crypto investors like to convert their crypto to stablecoins so they are not losing value on their coins. Then when a bull market starts again, they have stablecoins at the ready to trade for other cryptocurrencies.

Investors like to earn interest on stablecoins while they await the next bull run, so their money is working for them instead of sitting stagnant. In this article, we will talk about the platforms that provide the best stablecoin interest rates.

Where to earn interestFeaturesScoreSign Up
15% APY on USDC/USDT
Matrixport

Matrixport

☑️ Huge welcome offer of 15% APY on USDC & USDT, plus $15 USD Bonus

☑️ Buy, sell and trade stablecoins and other cryptocurrencies

9.8
Sign Up
High stablecoin interest
Hodlnaut

Hodlnaut

☑️ High returns on Stablecoins - USDT & USDC: 7.25% APY, DAI: 3.56% APY 

☑️ FREE $30 USDC sign-up bonus

9.6
Sign Up
Buy, sell and earn interest
BlockFi

BlockFi

☑️ Purchase stablecoins easily and earn interest within the same platform (8.75% APY)

☑️ User-friendly interface that is perfect for beginners

9.4
Sign Up

Best places to earn interest on stablecoins:

#1. Matrixport - 15% APY on USDT/USDC + $15 USD FREE

Matrixport is the best choice for new investors, as they are offering 15% APY for a limited time, on USDT and USDC stablecoins. Not only that, but you will also receive free $15 USD when you sign up with this link.

This is much higher APY than any other crypto interest account in this article, but the catch is that it is a limited time offer and for new users only, to attract more customers. Make sure you get in quick before they lower the interest rates for new customers.

Matrixport offers more than just excellent stablecoin interest rates; it is also a crypto exchange, where you can buy, sell, spot trade, and even margin trade with up to 5x leverage. Crypto loans, DeFi, and Dual Currency are other possibilities that Matrixport users can explore on the platform.

The main downside to Matrixport is that it is only accessible via mobile app; those that prefer using a desktop won't be able to access this platform from their computer.

Pros
  • Extremely high welcome offer of 15% APY on USDT and USDC
  • $15 free USD for new users who sign up with our link
  • Buy, sell and trade cryptocurrencies on Matrixport
  • Crypto loans, DeFi, and Dual Currency are other options for users
Cons
  • Only available on mobile app

#2. Hodlnaut - high stablecoin yields

Hodlnaut is another excellent recommendation for earning interest on your stablecoins, as it offers high returns, weekly interest payments, and no lock-in period, meaning you can withdraw at any time. Hodlnaut offers three stablecoins: USDT, USDC and DAI, as well as three other cryptocurrencies (BTC, ETH, and WBTC). For USDT and USDC, the interest rate is 7.25% APY, and for DAI it is 3.56% APY. Hodlnaut also has an excellent signup bonus if you use our link here. When you deposit >1,000 USD worth of stablecoins or other crypto into your Hodlnaut account and leave it there for at least 31 days, you automatically receive $30 USDC FREE.

One thing to note with Hodlnaut is that if you deposit larger amounts of USDT, USDC and DAI stablecoin, your interest rate will decrease, but this is true of most platforms.

With Hodlnaut, the rate for USDT is 7.25% up to 100,000 USDT,  then 5.23% between 100,000-500,000 USDT, 0.50% from 500,000 to 1 million USDT and 0.10% over 1 million USDT. 

Another bonus with Hodlnaut is that you have the option to purchase Custody Cover provided by Nexus Mutual, if you want additional peace of mind that your stablecoins are safe. This covers you if Hodlnaut gets hacked and you lose more than 10% of your funds, or if withdrawals from Hodlnaut are halted for more than 90 days. This is an excellent feature if you plan to place a large amount of funds into a platform to earn interest.

Pros
  • High returns of 7.25% APY for USDT & USDC, 3.56% for DAI
  • Cryptocurrency is not locked in, you can withdraw any time
  • Free 30 USDC sign-up bonus
  • Interest is paid weekly
  • Optional custody cover by Nexus Mutual
Cons
  • Only 6 different cryptocurrencies supported

#3. BlockFi - buy, sell and earn interest easily

BlockFi is another great choice if you are looking to earn interest on your stablecoins. The platform was founded in 2017 and offers up to 8.75% APY on USDT, and 8.5% on USDC, GUSD and more. The interest is accumulated daily but is paid to your account once a month.

The platform doesn’t have a minimum balance requirement, which means that you start earning interest almost as soon as you deposit. It also allows one free withdrawal per month, but if you want to withdraw again in the same month, you will need to pay a small fee which varies depending on the cryptocurrency.

BlockFi is different from Hodlnaut because it enables purchasing and selling of stablecoins and other cryptocurrencies. It is easier to use than some other interest-earning platforms, because you can simply buy your stablecoins and earn interest right away. There is no need to transfer them from one platform to another.  

BlockFi has a great Interest Flex Payment option, which lets you select which currency you receive your interest in. For example, you can earn interest on USDC, USDT and BUSD, but elect to have all your interest paid out in USDT. At the end of the month, all the interest will be paid out in USDT, instead of in three separate currencies.

Pros
  • Purchase stablecoins and other crypto and earn interest on the same platform
  • User-friendly interface is excellent for beginners
  • Interest Flex Payment option to earn interest in your cryptocurrency of choice
  • Used by over 1 million+ verified clients and 350 global institutions
Cons
  • Withdrawal fee after the first withdrawal per month

#4. Stargate - Up to 21% APY on stablecoins

Stargate is a liquidity transit protocol that allows you to exchange native assets. However, what attracted most of its users is that it allows you to stake stablecoins and receive awards in STG, which is also Stargate’s native crypto.

The platform supports BUSD, USDT, and USDC stablecoins, and allows an interest rate of up to an amazing 21% APY. Of course, for the highest interest rate, you will need to stake your coins for a year.

The only downside we noticed about Stargate is that it might not be the ideal choice for beginners and entry-level investors.

Pros
  • Interest rates of up to 21%
  • Low fees for most coins
Cons
  • Not an ideal choice for beginners

#5. Balancer - Another option for stablecoin interest

Built on the Ethereum blockchain, Balancer implements the AMM model, rather than the typical bidding that most systems adopt. Its protocol supports several assets, unlike Uniswap, for example, which supports only two.

However, although it supports up to eight assets in the same liquidity pool, you don’t need to have all the assets to invest in it. Having only one of the assets is just enough. Now, depending on the liquidity pool, the APY can range between 5% and 30%, but practically, the average interest rate is around 13%. Note also that Balancer supports BUSD, USDT, and USDC stablecoins.

When you choose the investment pool after connecting your wallet, the platform will give you an estimate of the potential stablecoin yield for the current week, which can be quite useful.

Balancer Pools are very customizable, so the fees can vary a lot between pools. They can range between 0.0001% and 10%, but the Smart Order Router will take the fees into consideration when determining the optimum price to be offered.

Pros
  • Very simple to use
  • APY can reach 30%
Cons
  • Fees may vary a lot, due to the high customizability of pools

All of these platforms offer some great features and advantages compared to most of the other places where you can invest in stablecoins. Matrixport is our top pick overall, due to high interest rates (30% APY) and ease of use. However, you can’t go wrong by choosing any platform from this list, since they are currently the best options to invest in stablecoins.

Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us. 

To read our privacy policy click here.


Tags


You may also like

Best Crypto Interest Accounts

Best Crypto Interest Accounts
>