Yield-bearing stablecoins surge as Washington fights over yield

Yield-bearing stablecoins have grown far faster than the broader stablecoin market over the past six months, a Messari report found, outpacing it by 15-fold. The surge was driven by a 198% rise in Circle’s USYC, a 169% increase in Paxos’ USDG, a 114% gain for Tron’s USDD and a 91% rise in Ondo Finance’s USDY, while the overall stablecoin market capitalization rose 9%.

Messari says the largest yield-bearing stablecoins are beginning to function more like money market funds or bank deposits, focusing on a single asset rather than payment use cases. They began outpacing stablecoin supply in mid-October 2025, a trend Messari interprets as growing demand for dollar-denominated blockchain products that offer yield without direct exposure to broader crypto volatility.

Stablewatch data put cumulative value of yield-bearing stablecoins at $22.7 billion after an 11% rise over the past 30 days, roughly double the $11 billion seen in May 2025 but only about 7.4% of the $303 billion stablecoin market.

United States, Washington

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