The developer of USDC, the second-largest USD-pegged stablecoin by market cap, Circle has announced a new yield program. Users can now deposit USDC to earn stable annual returns ranging between 8.5% to 10.75%, with registrations currently open.
USDC Fixed and Flexible Savings Products
According to Circle's official announcement, these products appear tailored for institutional clients, though individual applications may be considered based on regional eligibility.
The yield mechanism involves lending deposited USDC assets to financial institutions through Genesis Global Capital's digital asset lending platform. Interest accrues daily with weekly payouts, featuring tiered rates:
| Product Type | APY |
|---|---|
| Flexible Savings | 8.5% |
| 1-Month Term | 9.5% |
| 3-Month Term | 9.75% |
| 6-Month Term | 10.25% |
| 12-Month Term | 10.75% |
👉 Discover how USDC compares to other stablecoin yields
About Circle and USDC
Co-developed by Coinbase and Circle, USDC holds distinction as:
- The first stablecoin listed on Coinbase
- Backed by crypto unicorns
- Demonstrated consistent growth in DeFi adoption
Since March's market downturn, stablecoins have seen remarkable expansion:
- USDT: $4.6B → $16.9B
- USDC: $490M → $2.8B
Though USDC trails USDT in absolute terms, its growth rate surpasses Tether's, establishing both as market leaders.
The CeFi Yield Landscape
While DeFi's liquidity mining frenzy has cooled, centralized platforms maintain competitive edges:
- Celsius Network & Crypto.com: Offer substantially higher yields through native token integrations
- Bitfinex Lending Pro: Features dynamic USD rates frequently exceeding 30% APY with 120-day terms
👉 Explore top-yielding crypto savings options
FAQ Section
Q: Is Circle's yield program available worldwide?
A: Availability varies by jurisdiction with institutional prioritization.
Q: How does USDC's safety compare to USDT?
A: Both maintain full reserves, but USDC undergoes monthly attestations for transparency.
Q: What risks accompany CeFi yield products?
A: Counterparty risk exists since funds are lent to third parties versus DeFi's smart contract autonomy.
Q: Can yields change after deposit?
A: Flexible rates may fluctuate, while term deposits lock stated APY.
Investment Disclaimer: Cryptocurrency investments carry substantial risk due to price volatility. Conduct thorough research before committing funds.