Stablecoins that automatically generate yield from underlying Treasury or money market positions.
Market Size
$500M+
Typical Yield
4.5-5.5%
Key Issuers
4
## What are Yield-Bearing Stablecoins?
Yield-bearing stablecoins maintain a stable value while automatically passing yield to holders. This yield typically comes from US Treasuries, money markets, or other low-risk fixed income.
Token balance increases daily (e.g., USDM by Mountain Protocol).
Token value increases vs NAV (e.g., USDY by Ondo).
Separate reward claims (e.g., sDAI).
| Product | Issuer | Yield | Mechanism |
|---------|--------|-------|-----------|
| USDY | Ondo | 4.5%+ | Accruing |
| USDM | Mountain | 5%+ | Rebasing |
| sDAI | MakerDAO | ~5% | Accruing |
| sFRAX | Frax | ~5% | Accruing |
Access multiple yield-bearing stablecoins through Fensory Connect for optimized yield across chains.
| Issuer | Product | Yield |
|---|---|---|
| Ondo Finance | USDY | 4.5-5% |
| Mountain Protocol | USDM | 5%+ |
| MakerDAO | sDAI | ~5% |
| Frax Finance | sFRAX | ~5% |
Most yield-bearing stablecoins invest reserves in short-term US Treasuries or money markets, passing the yield to token holders.
They carry similar risks to underlying Treasury products, plus smart contract and issuer risk. The yield comes from real backing, not algorithmic mechanisms.