Stablecoin Holders Can Now Earn 8.5% Annually on USDC and USDT with Ledn Growth Accounts

Mauricio Di Bartolomeo, Co-Founder and CSO of Ledn, expressed the company's commitment to addressing industry demands for safer and more transparent ways to earn yield. He stated, "Ledn's USD stablecoin Growth Accounts combine high yield, industry-leading transparency, and prudent risk management practices."

With this expansion, holders of Circle's USDC and Tether's USDT can now earn an impressive annual percentage yield (APY) of up to 8.5% on their stablecoin holdings.

Ledn aims to rectify the issues that led numerous competing crypto lending services to face insolvency and bankruptcy starting in mid-2022. The firm will re-lend user assets through its retail loan book to generate yield, a strategy akin to that employed by other companies. However, Ledn is committed to providing transparent data about its activities through two key features: the Open Book Report and the new client dashboard.

Moreover, Ledn has described its accounts as "legally ring-fenced" and secure. This means that clients will only be exposed to counterparties that generate interest, ensuring that Growth Account assets remain unaffected even if Ledn encounters bankruptcy. Additionally, the risks associated with one type of Growth Account will not affect those holding a different asset.

In an exciting development, users will have the flexibility to switch between Transaction Accounts (without interest) and Growth Accounts (with interest). This feature empowers users with maximum control over their funds.

With several former top lending services, including Celsius, BlockFi, and Gemini Earn, experiencing setbacks, the number of high-interest options for crypto enthusiasts has dwindled. Bitcompare data reveals that Nexo offers a generous 12% APY rewards on loaned USDC, while Flynt offers an impressive 13.64%, Yield App offers 11%, and YouHolder offers 8.33%. Similar rates are available for loaned USDT from these services, with Flynt standing out as the exception. Other lending services tend to offer considerably lower interest rates.

For those who prefer staking services that do not re-lend user assets, the interest rates on stablecoin holdings are notably lower. Coinbase recently announced a 5% interest rate on USDC, while Binance, Kraken, Crypto.com, and other exchanges offer similar staking features.

It's important to note that the availability of these services is limited by geographical restrictions, with some, including Ledn's interest-bearing Growth Accounts, not accessible to users in the United States.