What it means
A stablecoin that passes on earnings from its reserves or strategy to holders.
Some hold government bonds, others run trading strategies. Their risks depend on how the yield is made.
How it works
USDC and EURC don't pay yield to holders themselves.
Related terms
| Term | What it means |
|---|---|
| Stablecoin | A token on a blockchain designed to keep a steady value, usually one dollar or one euro, backed by reserves. |
| Yield | What money earns over time, from interest, fees or rewards, usually shown as a yearly rate. |
| Real-world assets (RWA) | Ordinary assets, such as government bonds or loans, represented as tokens on a blockchain. |
This glossary explains terms in general. It isn't investment, tax or legal advice.