Yield-bearing stablecoins surge to $11B, now 4.5% of market: Report
Yield-bearing stablecoins have reached $11 billion in circulation, representing 4.5% of the total stablecoin market, up from $1.5 billion and 1% at the start of 2024. Pendle, a decentralized protocol, accounts for 30% of this market with approximately $3 billion in total value locked (TVL). Stablecoins now constitute 83% of Pendle's $4 billion TVL, a significant increase from less than 20% a year ago. Traditional stablecoins like USDT and USDC do not offer interest, leading to an estimated $9 billion in missed annual yield for holders. Regulatory clarity under the Trump administration has favored yield-bearing stablecoins, with the SEC approving them as “certificates” subject to regulation. Proposed bills like STABLE and GENIUS further support this trend. Pendle anticipates stablecoin issuance will double to $500 billion in the next 18 to 24 months, with yield-bearing stablecoins capturing 15% of this market. Pendle is expanding its focus to support networks beyond Ethereum and integrating with new blockchain projects. Interest in yield-generating strategies is growing among both retail and institutional investors.
