10 Best Ways to Earn on Stablecoin Holdings in December 2025

Stablecoins are cryptocurrencies pegged to assets like the U.S. dollar, allowing quick blockchain transfers without the price swings (allowing the stability of fiat). In the over $300 billion market today, they’re crucial for payments, trading, and earning without market swings. 

Types of Stablecoins

1. Fiat-Backed: Backed 1:1 by cash or short-term equivalents, these are the most widely trusted stablecoins. USDT and USDC dominate this category with a combined market cap of around $260 billion market cap through transparency reports from issuers like Tether and Circle.  This could be ideal for low-risk entry, although watch for regulatory scrutiny on reserves. 

2. Crypto-Collateralized: These stablecoins are minted against assets like Ethereum (ETH), usually over-collateralized to stay stable. The leading cryptocurrency here is DAI with around $5 billion in supply. It offers decentralization and easy DeFi use. However, risks include liquidations during volatility, with yields of 3-5% via the DSR.

3. Algorithmic: Here, stability is controlled by supply adjustments instead of reserves. After the likes of Terra failed in 2022, adoption has faded. Despite their existence, depeg risk is high, and yields can swing from 0-10%, which often is unsustainable.

4. RWA-Backed Stablecoins: These cryptocurrencies are backed by tokenized real assets like U.S. Treasuries. Options like USDM (Mountain Protocol) and USDY (Ondo) deliver 4-5% yields. They are tied to T-bills and operate under Bermuda’s regulatory framework. This“compliant yield” category is growing very fast.

How Investors Can Earn on Stablecoins?

• Safe yields: Stablecoin yields often crush bank rates. They enable even 0.5% in savings accounts vs. 5-15% APY. Therefore, idle cash becomes compounding income without price speculation
• Passive income: This stream of earning is created with minimal management as payouts often arrive daily or weekly, with minimal management. Usually ideal for long-term holders.
• Hedge volatility: Lock profits in USDC during market and earn approximately 4% while waiting to re-enter.
• Access arbitrage: These opportunities exist, especially in developing regions where USDT routinely trades 5-10% above spot.
• Dollar savings for emerging users: For users in markets hit by inflation like Argentina, inflation-hit markets like Argentina, stablecoins function as dollar savings with yield. Usually, they preserve purchasing power better than local currency.

We evaluated more than 50 methods and strategies using CoinGape’s review methodology. We considered digital assets with a total value locked (TVL) of over  $500B combined. We assessed audit ratings (CertiK, Quantstamp), user feedback on Trustpilot, and long-term yield performance. The curated list below highlights vetted, high-liquidity options with real APYs verified through DeFiLlama and official platform data.

Do you want to earn on stablecoins without touching DeFi? Deposit into centralized savings accounts, which are platforms that lend your USDT, share the interest, and earn a cut of lending fees, which are compounded daily.  It works just like bank savings, but with 10x returns. Regulated CeFi players like Nexo Lead with EU licences, and over $1B+ in assets, favourable for safety even as DeFi hacks increase. 

Use case:  Suitable for short-term savings, with added protection through insurance-style coverage on fiat ramps (up to around $375,000). Data shows 80% of users stay long-term because withdrawals are instant—no lockups needed.

On-chain lending lets you deposit stablecoins into decentralized protocols where borrowers pay interest. Connect your wallet, supply USDC or DAI, and your balance grows automatically. Aave V3 stands out in 2025, attributed to cross-chain liquidity and over $10 billion in pooled deposits. 

It’s transparent, audited about 20 times, and backed by over-collateralized loans to reduce risk.  Aave’s USDC utilization hit 80% in Q4 2025, boosting APYs.

You can profit from stablecoins by converting them into RWA tokens like USDY, which are backed by short-term U.S. Treasuries. You will be required to deposit USDC to receive USDY, and the asset auto-rebases as yield accrues. 

RWAs took off in 2025, reaching over $10B TVL as investors shifted to safer, regulated income streams. With regulated structures and daily attestation checks, platforms like Ondo offer institutional-grade exposure. Ondo’s $1.6B AUM and uninterrupted uptime reinforce trust.

You can also learn to make money with stablecoins through yield farming. This method lets you earn extra rewards on top of trading fees. When you deposit stablecoins into a farm, you will receive LP tokens, which you can stake to earn emissions such as CRV. The model grew rapidly in 2025, especially on Layer-2 networks, where fees dropped by nearly 90%. Curve alone now holds roughly $2.5 billion in stablecoin liquidity.

This decentralized approach is appealing if you are willing to take a bit of risk for a higher yield. Curve’s 5-15% returns can increase significantly when boost multipliers apply through veCRV voting.

Also Read – List of Top Yield Farming Platforms

Here, you can earn by supplying liquidity to pools, where traders pay around a 0.3% fee that’s shared proportionally among liquidity providers. The process is simple: deposit equal amounts of stablecoins, receive an LP token, and if you wish, stake it to earn extra rewards. 

With Uniswap’s V3 concentrated liquidity in 2025, efficiency has jumped 400%, and total value locked (TVL) exceeds $2 billion. Fully decentralized and audited, the platform makes swapping easy. For example, the USDC/USDT pool can generate 3-12% yields, backed by $144 billion in trading volume in Q3.

To start earning on stablecoins, deposit cryptocurrencies like USDC into a vault. The platform will automatically allocate funds to the highest-yield strategies, compounding returns hourly. Oracles guide strategy rotations, so your funds are always chasing the best opportunities.

Multi-chain vaults in 2025 are hitting up to 9% APY with over $7 billion in total value locked. Yearn’s USDC vault, for example, offers a base return of around 2.59% and automatically sells rewards for reinvestment. It is fully decentralised and audited across 15+ security checks.

Another good way to earn interest from stablecoins is by staking synthetic stablecoins like USDe. You could earn yield from perpetual short positions that offset your collateral. This is a delta-neutral setup that keeps your peg stable while generating profits from funding rates. 

The supply in 2025 has reached $8.4 billion following the GENIUS Act. Fully decentralized and audited, these strategies are designed for market-neutral plays. For example, Ethena offers around 9% APY by combining stETH staking with shorts.

FDUSD in participating pools and earn rewards based on the amount you stake. Over $3 billion has been committed across 60+ active projects. These programs run on centralized platforms, typically insured and designed to offer short-term promotional yields.

A good example is Binance Launchpool, where users can earn between 5-20% APY for a limited time, with more than 550,000 people taking part.

The idea to earn yield from stablecoins is straightforward, simply deposit crypto and farm points. These are later converted to tokens after launch. You can increasingly accumulate points by actively participating in testnets, providing liquidity or staking redeemable once a token launches. 

These point systems have become early indicators of token generation events (TGEs) in 2025, with more than $200 million distributed to early users. These are decentralized opportunities with low entry requirements.

A good example is Perena’s stablebank, through which users earn XP through lvlUSD, and the protocol currently has a cap of around $80 million.

Here you can buy stablecoins like USDT at a lower rate on P2P markets at 90 RUB, for instance. Then sell it at a higher spot value and keep the difference. The strategy works best when you monitor exchange rate gaps closely and move quickly.

P2P volumes climbed to about $144 billion in Q3 alone, largely fueled by inflation-driven demand. The method relies on centralized P2P platforms and is compliant with KYC requirements. On Gate, margins typically range from 2–15% on trades of around $50,000.

Your choice depends on your risk appetite, time commitment, and long-term goals. With the right mix, stablecoins can generate anywhere from 4% to 16% annually, without sacrificing liquidity.

1. Based on Risk Level (Low, Medium, High)
   If you are a low-risk seeker, you could consider choosing insured CeFi accounts or RWA products offering 4-8%. Medium-risk users can use audited DeFi lending at 3-10%. High-risk approaches like farming can exceed 15%, but impermanent loss remains a concern.
2. Based on Time Commitment (Passive vs Active Income)
   If you prefer passive income, auto-compounding vaults offer 2-9% once set up. Those comfortable with active trading can use P2P arbitrage, monitoring prices daily to capture double-digit spreads.
3. Based on Stablecoin Type (USDT, USDC, DAI, FDUSD, PYUSD)
   USDT works well on CeFi platforms with high yields, USDC dominates DeFi lending, DAI earns strong savings through Maker’s DSR, FDUSD often features on launch pools, and PYUSD is gaining traction through PayPal’s ecosystem.
4. Based on Platform Preference (CEX vs DeFi)
   Centralized exchanges like Binance offer simple earning options and flexible returns. DeFi platforms provide more control and transparency, though gas fees and manual setup can slightly reduce net gains.

Stablecoin rates differ depending on platform demand and lock-in terms. CeFi platforms generally offer the highest fixed returns, while DeFi options provide more flexibility and long-term upside. The figures below reflect December 2025 snapshots and may change over time.

Different platforms depend on the goal. For instance, while CeFi is strong on safety and access, DeFi stands out for flexibility and innovation. On the other hand, RWA platforms bridge traditional finance, offering stability through regulated yields.

1. Best Centralized Platforms (Low Risk)

CeFi platforms like Nexo and Binance offer you around 8-16% on major stablecoins. They claim to provide insured deposits and allow instant withdrawals. They’re easy to use and ideal for beginners who want dependable returns without managing wallets or on-chain interactions.

2. Best DeFi Platforms (Medium Risk)

Aave and Compound deliver variable returns ranging from 2-10%. The DeFi platform sare backed by large liquidity pools and smart contract infrastructure. They could suit those comfortable operating with wallets like MetaMask and working directly on-chain.

3. Best RWA Platforms (Regulated Yield)

Ondo and Mountain’s USDM earn around 4-5% through Treasury-backed assets, offering regulatory clarity and traditional-style safety. These RWA platforms suit users or institutions that want predictable returns with a formal compliance layer.

Safety comes first. DeFi still holds billions at risk, so spread funds across different methods rather than committing everything in one place. Here is a step-by-step guide on how to profit from stablecoins safely. 

Step 1: Choose a stablecoin.

Consider well-regulated coins like USDC, where monthly reports and reserves are publicly disclosed, instead of experimental algorithmic coins.

Stablecoins by Market Capitalization (Source: CoinMarketCap)

Step 2: Pick a wallet

Centralized apps such as Binance are easier for beginners, while non-custodial wallets like MetaMask offer full control. Whichever you use, enable two-factor authentication.

Step 3: Select your earning method.

Match it with your risk profile. A simple savings account on Nexo fits low-risk users, while yield farming suits those comfortable with volatility.

Step 4: Deposit and start earning.

Begin small with around $100, which is enough to start. Confirm each transaction carefully and keep an eye on gas fees when using Ethereum.

Step 5: Monitor rates and platform health.

Yields change, so check performance regularly. Track platform status using tools like DeFiLlama, and set alerts if a stablecoin moves more than about half a percent off its peg.

To determine which strategies actually work, CoinGape crypto experts evaluated more than 50 earning options. They ranked them based on total value locked, security standards, consistency of yields, user adoption, and regulatory readiness for 2025. We focused on platforms with over $1 billion in TVL, strong audit ratings such as CertiK A-scores, and verified user experiences gathered from sources like Trustpilot and Reddit.

1. Total Value Locked (TVL) – 30%

TVL reflects how much capital is locked in a platform, indicating user trust and protocol maturity. Our focus was on platforms with over $1 billion, because higher TVL generally means better liquidity and lower manipulation risk. In 2025, top performers like Aave ($33B TVL) show stability, helping minimize flash loan exploits and maintain consistent yields.

2. Security Audits – 25%

Audits confirm smart contract security. We prioritized protocols with multiple CertiK A-rated reviews, following post-2025 standards like AICPA criteria for transparent code.  This helps reduce vulnerabilities, since unaudited platforms have historically faced three times more breaches.

3. Yield Consistency – 20%

We also analysed historical APYs over 12 months, favoring stable 4-8% returns rather than volatile spikes. Platforms like Compound were assessed using utilisation curves to ensure rates remain reliable during market dips, supporting sustainable income.

4. User Adoption – 15%

We measured real-world usage through active wallets and user reviews on Trustpilot and Reddit. High adoption strengthens network effects and liquidity. Platforms with over 1 million users tend to retain participants better and benefit from community-driven improvements.

5. Regulations – 10%

Compliance with frameworks like the GENIUS Act and SEC guidelines was considered, focusing on reserve transparency and interoperability. Licensed issuers scored higher, ensuring yields follow consumer protections and avoid regulatory freezes.

By weighing these factors, we highlighted strategies with over $1 billion TVL, strong audit scores, and verified user feedback, creating a trustworthy list for 2025 stablecoin investors.

High yields are tempting, but over $2 billion was lost to exploits in 2024 alone, so caution is essential. Always diversify and prefer insured or audited options.

1. Smart Contract Vulnerabilities – Code bugs can lead to drained funds. Even with multiple audits, like Aave’s 20 reviews, about 5% of DeFi hacks affect lenders. Stick to well-established platforms such as Compound.

2. Platform Insolvency or Freezes (CEX Risk) – Centralized platforms can freeze funds when a crisis occurs, as seen with Celsius in 2022. Go for insured platforms like Nexo, which offer over $100M coverage, instead of unbacked exchanges.

3. Stablecoin Depegging – Stablecoins can lose value temporarily, like when USDT fell 6% in 2022, and algorithmic coins risk 20%+ in losses. Safer choices include fiat-backed or RWA stablecoins like USDC.

4. Impermanent Loss in Liquidity Pools – Stable pairs usually keep impermanent loss below 1%, but sudden depegging can increase it. Losses have been historically capped at around 0.5%.

5. Regulatory Intervention and KYC Requirements – Laws like the GENIUS Act provide clarity, but Know Your Customer (KYC) requirements on CeFi platforms add steps. DeFi avoids KYC but faces bans in roughly 10% of countries.

Your strategy on how to make money with stablecoins should match your goals and risk tolerance. If you are a low-risk investor, you can earn around 4-8% through RWAs like Ondo. On the other hand, yield chasers might target 10-15% via DeFi farms, keeping an eye on impermanent loss. 

If you choose to be a passive earner instead, you can benefit from auto-compounding vaults like Yearn. Returns grow with investment, $10,000 at 8% will earn you around $800 annually. Safety should always be your priority, with audit checks and diversification across various methods.

Also, rely on transparent, on-chain proofs. Responsible stablecoin investing isn’t just smart, it gives you an advantage over traditional banks.

1. https://coinmarketcap.com/view/stablecoin/

2. https://www.certik.com/

3. https://coingape.com/ways-to-earn-passive-income-crypto/

4. https://defillama.com/yields

5. https://www.circle.com/en/transparency

6. https://coingape.com/make-money-with-cryptocurrency/

7. Circle USDC Transparency – Audits for USDC.

8. IMF Stablecoins Report – Global risks.

9. CoinGecko RWA Guide – RWA basics.