How Does USDC Interest Work? What You Need to Know

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USDC (USD Coin) is a stablecoin that is equal to the US dollar and runs on different blockchains such as Stellar, Ethereum, and Solana, among others. The goal is to regulate the volatility of cryptocurrencies, making transactions faster and more affordable.

This is like using digital dollars to make a transaction on crypto platforms. If you have invested in USDC, you can rest assured that you will redeem 1 USDC for $1 no matter when. This is considered a breakthrough in the crypto sector since the coin has been a big success.

USDC investors can grow their investment by saving to earn interest. But how does USDC interest work? There are important things you need to learn about this concept before giving it a try. This article will guide you.

What is USDC Interest?

What is USDC Interest

So, how does USDC interest work? Before you explore this more, let's discuss the definition of USDC interest. This is the income an investor earns when they save their stablecoin on a dedicated saving platform. It is calculated in annual percentage yield (APY).

USDC high yield platforms give an enticing APY of between 10 and 16%. They consider stablecoins to be more stable, hence the higher APY than Bitcoin and altcoins.

If you are wondering, “How does USDC interest work?” Then you are probably interested in getting a USDC savings wallet to enjoy the high interest.

How Does USDC Interest Work?

Before we look at the platform that will give you a handsome interest, let’s look at how it works. When you save USDC, the platform lends your digital assets to borrowers who return them with interest. From this income, the investor gets a cut in the form of interest called APY.

USD interest is usually compounded every day and paid to the investor account after some time. Some give daily and others weekly. Once it is paid, you can choose to withdraw, swap it to other crypto coins, or maintain it in the account to grow your crypto saving. However, what you can get depends on the services offered by the crypto saving platform.

Common Crypto Saving Platforms

Common Crypto Saving Platforms

Do you still want to know how USDC interest works? When you go through the insights below, you will know much more about earning interest on USDC.


YouHodler is coined from the word “hodling,” which is another word coined from holding. Holding means saving cryptocurrency and earning interest in return. YouHodler gives 12.3 APY on all your USDC and this is compounded every day.

However, you will only redeem this weekly from your account. You could buy USDC directly on YouHodler or transfer them from your account to start saving on the platform. It is very secure, fast, and affordable, which is why you should try it.


This is another crypt saving platform you can try to earn up to 12.73% APY. They also have a plethora of USDC bonuses when you buy their services. All you need is to sign up to get an account and start saving. The interest is also compounded every day and will be sent to your account regularly. Similarly, you can decide to leave it in your account to increase your investment or withdraw it for other uses.

This platform has one of the highest APYs on the market. The APY can go as high as 14% on USDC and other stablecoins. Hence, it is good you know how to earn USD coins using this platform because it will grow your investment a lot.

So, how does USDC interest work on this platform? Just like other platforms, you need to sign up and deposit USD in your account to start earning. Once the interest is paid to your account, you can withdraw it.


Nexo is a popular crypto saving platform with 12% APY on USDC. Investors are required to open an account with Nexo on their website and deposit USDC. As an investor, you may have this question: how does USDC interest work on Nexo? It works pretty the same as other popular platforms we have discussed.

The interest will be compounded every day and sent to your account. It is highly recommended that you grow your investment to earn more in return interest.


Although BlockFi has an interest of below 10% on USDC and other cryptos, it is still a great platform to try. After all, it has other benefits such as bank-level digital asset security, affordable fees, and an array of bonuses. It is best to assess all other benefits before choosing BlockFi, which will only give you an interest rate of 8.25% APY on your USD.


Does USDC earn interest? Any crypto enthusiast will confidently say yes. How does USDC interest work? We have just shared great insights to help you learn how it works. Once you have signed up and saved your USDC, you will earn compounded interest right into your account. For now, all you need is to make informed decisions on where to invest.

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