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Ripple is spotlighting how stablecoins can earn income onchain, reframing digital dollars as productive assets through yield strategies that go beyond payments and price speculation.
Ripple Highlights Overlooked Stablecoin Yield Strategies
Ripple shared a bullish explanation on social media platform X on Jan. 7, outlining how stablecoins can generate income when used actively onchain, emphasizing that many users overlook yield opportunities that transform digital dollars from idle balances into productive financial tools.
“Is your capital sitting idle? Jack McDonald, SVP Stablecoins at Ripple, says it doesn’t have to,” Ripple wrote in the post. The message framed stablecoins as more than basic payment tools and pointed to two commonly overlooked ways holders can generate returns. It highlighted “Direct Yield: Interest-bearing assets” alongside “Secondary Utility: Collateralizing for DeFi & AMM liquidity” to illustrate how stablecoins can be deployed productively while maintaining price stability. The broader takeaway was underscored with the statement:
With stablecoins, the transition from digital dollars to yield engines is here, delivering greater efficiency and utility onchain.
Together, the remarks conveyed that earning returns with stablecoins does not rely on market appreciation, but on how capital is actively used within onchain financial infrastructure.
In the accompanying “ Crypto in One Minute” video, Ripple’s senior vice president of stablecoins explained the mechanics behind those strategies in practical terms.
“There’s basically two ways that you can use a stablecoin to generate yield or interest on your investment,” he said, outlining interest-bearing stablecoins that share returns derived from reserve assets in certain jurisdictions. He also described how stablecoins can be used as collateral across decentralized finance, including lending protocols such as Aave and automated market maker liquidity pools.
McDonald compared these options to a traditional savings account, explaining that onchain deployment allows capital to remain accessible while earning incremental returns. He said:
In either case, you’re using your stablecoin onchain to generate some interest in the same way that you can think about a savings account where you get a little bit of interest on the side.
He concluded that using stablecoins in this way delivers greater efficiency and utility for holders who want their digital dollars to stay productive without taking on direct exposure to price volatility.
FAQ ⏰
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How can stablecoins generate yield onchain?
Ripple says stablecoins can earn income through interest-bearing assets or by being used as collateral in DeFi and AMM liquidity. -
What did Ripple say about idle stablecoin capital?
Ripple emphasized that many users miss opportunities to turn idle stablecoins into productive, yield-generating assets. -
Who explained Ripple’s stablecoin yield strategies?
Ripple SVP of Stablecoins Jack McDonald detailed the approaches in a Crypto in One Minute video. -
Why does Ripple view stablecoins as more than payment tools?
Ripple argues stablecoins can deliver efficiency and utility by earning yield without relying on price appreciation.