Yield-bearing stablecoins have surged to $11 billion driven by regulatory shifts and increasing user demand. They are representing 4.5% of the total stablecoin market. One of the biggest winners is Pendle, a decentralized protocol that enables users to lock in fixed yields or speculate on variable interest rates. Pendle now accounts for 30% of all yield-bearing stablecoin total value locked (TVL) which is roughly $3 billion. Traditional stablecoins like USDT and USDC do not provide interest to holders. Pendle estimates that stablecoin holders are missing out on more than $9 billion in annual yield.

The rise of the yield-bearing stablecoins comes with increasing regulatory clarity under the US President Donald Trump’s administration. In February the US Securities and Exchange Commission approved yield-bearing stablecoins as “certificates” subject to securities regulation. This approval allows yield-bearing stablecoins to operate under specific rules including registration, disclosure requirements and investor protections. Proposed bills like the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) signal a favorable direction.

Initially focused on airdrop farming, Pendle has moved toward serving as an infrastructure layer for decentralized finance yield markets. Pendle is also expanding beyond Ethereum with plans to support networks like Solana and to integrate with Aave and Ethena’s upcoming Converge blockchain. Their web site is https://www.pendle.finance .