From Cointelegraph

May 21, 2025 07:19:00 AM:

Yield-bearing stablecoins have surged to $11 billion in circulation, making up 4.5% of the total stablecoin market, a significant increase from just $1.5 billion and a 1% market share at the beginning of 2024. Pendle, a decentralized protocol, leads the way with 30% of all yield-bearing stablecoin total value locked (TVL), amounting to approximately $3 billion.

Stablecoins now make up 83% of Pendle’s $4 billion total value locked, a stark rise from less than 20% a year ago. Traditional stablecoins like USDt and USDC do not provide interest to holders, causing them to miss out on over $9 billion in annual yield with over $200 billion in circulation and US Federal Reserve interest rates at 4.3%.

Regulatory clarity has played a role in the rise of yield-bearing stablecoins, with the US SEC approving them as “certificates” subject to securities regulations. Proposed bills like the STABLE and GENIUS acts signal a positive direction for the industry. Pendle predicts stablecoin issuance to double to $500 billion in the next 18 to 24 months.

Pendle has transitioned from airdrop farming to focusing on decentralized finance yield markets infrastructure. With a shift toward serving as an infrastructure layer, Pendle is expanding beyond Ethereum to networks like Solana and integrating with projects like Aave and Ethena’s upcoming Converge blockchain. Interest in yield-generating strategies within the crypto sector has grown, attracting retail and institutional investors.

Franklin, a hybrid cash and crypto payroll provider, has launched Payroll Treasury Yield on May 19, using blockchain lending protocols to help companies earn returns on payroll funds. This move underscores the increasing trend of utilizing DeFi solutions to maximize returns on digital assets.

Read more at Cointelegraph: Yield-bearing stablecoins surge to $11B, now 4.5% of market: Report