Investors looking for generous yields have traditionally struggled to find them in traditional banking products like savings accounts. However, the crypto industry has matured and is now offering low-risk investment products, many of which involve stablecoins. Stablecoins are blockchain-based tokens with their price pegged to fiat currencies, usually the US dollar.
The largest stablecoin by market cap is Tether (USDT), and there are several ways investors can make the most out of it. One option is to utilize USDT lending platforms, which offer high yields while reducing volatility risk. These centralized lending platforms operate similarly to traditional online lending services or banks and require users to pass through a KYC verification procedure before their account is approved.
Three trusted lending platforms that support USDT and provide high yields include Coinloan, Nexo, and YouHodler. Nexo, in particular, offers an APY of up to 16% on USDT deposits and provides additional benefits for users who choose to utilize the platform’s native token, NEXO.
Investors can also earn interest on USDT lending through centralized crypto exchanges like Binance and Crypto.com. These platforms use funds to lend to traders engaged in margin trading, and users typically have to lock their USDT for a predetermined period. Binance offers a generous APY of up to 10% on USDT flexible deposits, while Crypto.com provides APYs ranging from 0.4% to over 5% depending on the user’s balance and willingness to hold CRO tokens.
For investors who prefer to have full control over their funds and avoid sharing personal information, decentralized finance (DeFi) lending protocols like Aave and Compound Finance are viable options. These protocols run on algorithms and blockchain technology, offering users access to financial services without the need for centralized entities.
Overall, the high yields offered by USDT lending platforms and exchanges are driven by the growing demand for loans against crypto collateral. With traditional savings accounts offering minimal yields, stablecoins like USDT provide investors with alternative options for generating income from their crypto holdings.
