5 Best Stablecoins to Lend of 2022

A curated list to help you choose an excellent stablecoin to lend for satisfying returns.

ALSO CONSIDER: Best stablecoin interest accounts || Best crypto platforms

Most crypto enthusiasts are currently looking for reliable ways to earn passive income using their hodled assets. Stablecoin lending has emerged as among the best ways to do so. If you are here, you probably understand how this concept generally works. However, you don’t know which digital assets work well with it. If that’s you, this article is for you. Today’s post will guide you through choosing an excellent stablecoin to lend for satisfying returns.

What is Stablecoin Lending?

Before moving further, let’s briefly discuss what stablecoin lending entails.

As the name suggests, stablecoin lending refers to investing digital assets with a lending platform to earn passive income. The platform loans out your assets to a borrower, who then repays them later with interest, thus making you money. The borrower could be a crypto investor looking for business capital or an individual looking for quick money to cover some expenses.

A borrower requires collateral to borrow a crypto loan. Unlike traditional financial institutions, crypto lenders usually ask for collateral in crypto assets like Bitcoin. The borrower can’t withdraw or trade with the collateralized assets. That way, if they default on the loan, the lending platform can liquidate the collateral and repay you.

If you have any stablecoins, lending can be a great opportunity to put them to work. You can lend your stablecoins through any lending platform, provided it’s insured and regulated. Celsius and Nexo are some of the best options.

The Best Stablecoin Assets to Lend

Now that you know how stablecoin lending works, let’s look at the best coins to lend. We only included assets with the best stablecoin interest rates that will make it easier and quicker to earn interest.

Tether (USDT)

Tether is among the most popular stablecoins in the crypto world. It has a market cap and is backed by the U.S. dollar. So, you can exchange one USDT for a dollar at any time. Tether has maintained its dollar peg for quite a while, meaning it’s safe to invest in.

Lending rates and terms for USDT vary with lending platforms. For instance, Nexo offers up to 12% interest rates for lending it, while other platforms such as CoinLoan and YouHodler offer 10.3% and 11.29% respectively. Therefore, if you are looking for platforms with the high stablecoin interest rate, CoinLoan and YouHodler are your best bets. But you should note that they have varying lending terms.

Best USDT Lending Accounts
CoinPlatformInterest Rate (APY)
TetherNexo12%
TetherMidas.Investments14.5%
TetherCoinLoan10.3–12.3%
TetherYouHodler11.29%
TetherBit.com80%
TetherLendingBlock12%

USD Coin (USDC)

USD Coin is another popular stablecoin used in many online global transactions. This stablecoin is backed by the U.S. dollar at a 1:1 ratio. Therefore, its price is quite stable. It was created by Circle and is powered by Ethereum. USDC has a market cap of .

Most crypto lending platforms offer enticing stablecoin interest rates for this crypto asset. For example, lending USDC on Nexo and YouHodler can easily earn you a whopping 12% or 11.29% interest rate respectively. This is notably higher than what most interest-bearing or savings accounts offer today.

Best USDC Lending Accounts
CoinPlatformInterest Rate (APY)
USD CoinNexo12%
USD CoinMidas.Investments14.5%
USD CoinCoinLoan10.3–12.3%
USD CoinYouHodler10.85%
USD CoinBit.com7%
USD CoinHodlnaut7%

DAI

Unlike other stablecoins in this list, DAI is an 'algorithmic stablecoin' whose value is pegged to the U.S. dollar. It's truly decentralized and maintained by the Maker platform. Maker is a DeFi lending and borrowing protocol. Users lock up their crypto as collateral in a Maker Vault and mint DAI against it. Their assets stay locked in the vault until they've repaid their DAI.

DAI has been around for about six years now. It runs on the Ethereum blockchain and currently has a market cap of , making it a fantastic investment option. It is also available on many crypto lending platforms, making it easy to invest in.

You can lend DAI on lending platforms such as Nexo and YouHodler. The interest rates for lending this crypto asset usually range from 6–14.5%. The earned interest on some platforms like Nexo is paid monthly or even daily, thus making DAI a great income generator.

Best DAI Lending Accounts
CoinPlatformInterest Rate (APY)
DaiNexo12%
DaiMidas.Investments14.5%
DaiCoinLoan10.3–12.3%
DaiYouHodler10.85%
DaiBit.com1.4%
DaiHodlnaut3.5%

Binance USD (BUSD)

Binance USD (BUSD) was founded by Binance and Paxos. This asset is issued on the Ethereum blockchain, and you can trade or exchange it with other cryptos such as Bitcoin.

Its value has also increased dramatically over the last two years, as the market cap now stands at . This shows its huge potential and makes it excellent for investment purposes. Lending is one of the best ways to invest your BUSD.

Interestingly, you can do so even outside of Binance. However, lending BUSD on Binance will earn you better profits. For instance, YouHodler offers a 9.42% lending interest rate for BUSD, while Binance offers up to 20%.

Best BUSD Lending Accounts
CoinPlatformInterest Rate (APY)
Binance USDMidas.Investments14.5%
Binance USDCoinLoan10.3–12.3%
Binance USDYouHodler9.42%
Binance USDBlockFi7.5%
Binance USDBinance10%

TrueUSD (TUSD)

TrueUSD is among the first dollar-backed stablecoins to enter the crypto market, making it a transparent option to consider. This coin has a market cap of .

TUSD is an excellent stablecoin to lend today as most lending platforms offer a fantastic annual percentage yield for it. For example, Nexo offers a 12% stablecoin interest rate for TUSD.

Best TUSD Lending Accounts
CoinPlatformInterest Rate (APY)
TrueUSDNexo12%
TrueUSDCoinLoan10.3–12.3%
TrueUSDYouHodler10.85%
TrueUSDCrypto.com0.1%

Who has the highest interest rates?

StablecoinNumber of PlatformsHighest Interest Rate (APY)
Tether (USDT)
18Up to 80% (Bit.com)
USD Coin (USDC)
18Up to 14.5% (Midas.Investments)
Dai (DAI)
16Up to 14.5% (Midas.Investments)
Binance USD (BUSD)
9Up to 14.5% (Midas.Investments)
TrueUSD (TUSD)
7Up to 12% (Nexo)

How to Get the Best Stablecoin Interest Rate

The stablecoin interest rates in the market are mostly predetermined, meaning there isn’t much you can do to change them. However, there are some tricks you can apply to help land the best offers and maximize your income. These tips include:

  • Compare different lending platforms. Lending platforms offer varying interest rates, even for the same stablecoin. If you have been keen, you will have noticed that there could even be a whole 3% difference between the offered rates in the market. Therefore, always check the rates that different lenders offer for the asset you want to lend. That way, you can pick the most favorable one. If you have no idea which platforms to check out, here is a detailed guide to help you out.
  • Mostly have stablecoins in your crypto portfolio. Stablecoins are generally less volatile than other cryptocurrencies. Therefore, lending platforms usually offer better interest rates for them. So, lending stablecoins would enable you to make more money. However, if you’re a hodler and want to keep holding your volatile cryptos, this option may not work for you. This is because you might have to convert them to stablecoins, thus missing out on potential gains.

Conclusion

Stablecoin lending is the new hotcake in the crypto space. Most stablecoins are great options for earning interest through lending. Luckily, this article has highlighted the best assets for the job. Therefore, we hope you now have a clearer mind about where to put your money.

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