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Key Takeaways
- Four of six offer no native yield.
- Fiat-backed issuers retain interest, DeFi/synthetic pass it through.
- GENIUS Act compliant products: USAT (Tether), USDtb (Ethena).
- Most regulated issuer: Circle (MiCA EU, conditional OCC US approval).
- Broadest regulatory coverage: Paxos (OCC, MiCA, MAS).
The Yield Question Separates the Two Business Models
The four fiat-backed issuers offer no yield to holders not because they cannot but because their business model depends on retaining the interest their reserves earn, and the yield exists: it simply does not reach the person holding the stablecoin. Tether holds cash, cash equivalents, and other assets against USDT and USAT. Circle holds cash and cash equivalents in the Circle Reserve Fund against USDC and EURC. World Liberty Financial and BitGo hold cash and cash equivalents against USD1.
Paxos holds USD-denomina...
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