Do you think stablecoins are just 'digital dollars' on the blockchain? You might not know that there is a type of rapidly rising asset that can not only stabilize your principal but also automatically 'work for you to earn money.'


We are not talking about DeFi liquidity mining or currency arbitrage, but rather the yield-bearing stablecoins that have stepped into the spotlight.


This sector is quietly brewing a financial revolution capable of changing the entire stablecoin market structure.



What are 'yield-bearing stablecoins'? How do they differ from USDT and USDC?


The underlying logic of traditional stablecoins (like USDT, USDC) is very simple: 1 dollar exchanges for 1 token; your funds are merely 'custodied' and do not yield any returns.


However, yield-bearing stablecoins have disrupted this concept. They are not about 'preserving value,' but about 'generating income':


  • Core principle: The assets behind stablecoins are no longer simply cash or bank deposits but are directed toward yield-generating tools, such as U.S. Treasury bonds, on-chain lending, quality DeFi protocols, quantitative strategy funds, etc.;


  • Yield distribution mechanism: These yields are returned to holders through smart contracts, buybacks and burning, interest distributions, etc., allowing your digital dollars to have a 'annual yield' attribute.



In other words, it is a stablecoin with a native interest model, a prototype of 'on-chain money market funds.'



Explosive growth rate: a leap from $600 million to $9 billion


The market is already voting with its feet. According to statistics from multiple data platforms:


  • In August 2023, the market cap of yield-bearing stablecoins was only $660 million;


  • By June 2024, it had skyrocketed to $9 billion, increasing nearly 13 times in just over a year;


  • The annual growth rate in 2024 reached as high as 583%, far outpacing traditional stablecoins and mainstream altcoin sectors.



However, despite the rapid growth, it currently accounts for less than 5% of the total market cap of stablecoins (approximately $230 billion).


Compared to traditional financial **money market funds**, which have a global total size exceeding $70 trillion, the potential of yield-bearing stablecoins has yet to be fully unleashed.



Want to know which yield-bearing stablecoins are growing the fastest? Which yield models are the most robust? The 'AI Daily' and 'Data Dashboard' sections of Mlion.ai can help you automatically track the performance, capital inflows, and yield strategy distribution of emerging stablecoin projects, saving you a lot of research time.




Not just growth, but a 'redefinition of the financial system.'


Don't take this as just an ordinary explosion in the crypto sector. This is more like a new experiment in financial structure:


  • It allows ordinary users to obtain yield-bearing cash equivalents for the first time 'without intermediaries.'


  • It gives digital assets genuine savings attributes, enhancing the ability to retain capital on-chain.


  • It builds the most natural 'yield channel' between traditional finance and the crypto market, replacing the role of centralized banks.


This form of stablecoin is actually reconstructing the definition of 'on-chain cash'—no longer price pegged but rather a combination of value generation + preservation + yield distribution.



Triple resonance of policy, giants, and infrastructure.


This sector is worth paying attention to not only because of the explosive technology and market data but also because the policy attitude and capital pathways are synchronously shifting.


  1. Regulation is gradually becoming clearer: regulatory agencies such as the SEC and CFTC are no longer ambiguous about yield-bearing stablecoins, and recent legislative drafts like the (GENIUS Act) specifically mention 'regulatory exemptions and adaptation frameworks for yield-bearing products.'


  2. Institutions are entering directly: BlackRock has entered this field through the BUIDL project, designing native on-chain treasury yield stablecoins, marking that traditional giants are no longer 'spectating' but are instead 'taking action.'


  3. The integration of the DeFi ecosystem is accelerating: protocols like Aave, Maker, and Curve have begun to natively integrate support for yield-bearing stablecoins as collateral, creating a true liquidity closed-loop effect.



Using Mlion.ai's 'News Deep Analysis' and 'On-chain Address Analysis' features can help you quickly identify changes in the actions of these giants, capital movements, and token deployment strategies. This is especially suitable for determining when funds officially enter and which protocols truly benefit.




In conclusion: Yield-bearing stablecoins are not a short-term speculation; they are the prelude to the next stage of the 'on-chain currency revolution.'


This is not just the return of interest but a reconstruction of the fundamental rules of finance in Web3.


Just as money market funds broke out in the context of a weakening dollar system in the 1970s, today's yield-bearing stablecoins may replicate that historical explosion. The difference is that this time it is being achieved on-chain, with greater efficiency, transparency, and global potential.


If you are still hesitating whether to participate in this sector, you may miss the layout window by the time big capital fully enters.


It is recommended to regularly use Mlion.ai for trend tracking of new tokens, identifying capital movements, and evaluating yield models, helping you to obtain the 'prophet ticket' first in this trillion-dollar turning point.



Disclaimer: The above content is for information sharing only and does not constitute any investment advice. Digital assets are highly volatile; please operate with caution.