Earning Cryptocurrency Yield with USDC

Earning Cryptocurrency Yield with USDC

Rachel Mayer Rachel Mayer December 21, 2021

Cryptocurrencies like Bitcoin typically don’t generate returns when held in a wallet, but earning cryptocurrency yield is possible with new crypto investment options like Circle Yield*.

Dollar Digital Currency Powers Superior Cryptocurrency Yield

While many digital assets are highly volatile, dollar digital currencies like USD Coin (USDC) provide the price stability that businesses and institutions look for in an investment asset. 

Years of near-zero interest rates combined with increased fiat money printing in the wake of COVID-related economic slowdowns have pushed interest earned on investments to historic lows.

Dollar digital currencies combine the stability of the US dollar with the security and flexibility of cryptocurrencies, making it easy to send dollar-denominated value across the globe at low cost and with settlement often in minutes or seconds.  As a result, dollar digital currencies have become one of the most popular assets in crypto capital markets.

Circle Yield, available for qualified businesses, enables institutions to receive an annualized returns of 4.9% to 5.65%** on USDC deposits as of December 21, 2021.


How does Circle offer better interest rates than traditional investment products? 

Circle Yield lends deposited USDC to a network of institutional counterparties that are ready to pay high interest rates to access dollar digital currency to invest.

Demand for dollar digital currency among institutional investors, hedge funds and other businesses is greater than the available supply within the cryptocurrency ecosystem, leading to higher interest rates for investors compared to many traditional financial investments. 

Accessing Higher Yield with Circle

Traditional high-yield savings accounts generate an average of about 0.50% APY1. That figure has declined in recent years as global economic conditions have caused the Federal Reserve and other central banks to adopt a monetary policy of cutting interest rates to encourage consumption and investments.

These measures are used to stimulate economic recovery and growth, but are not favorable to savers and investors looking to deploy capital in more conservative financial instruments that can still beat inflation.

Circle Yield offers secured, term investments conducted entirely using USDC, enabling qualified businesses to secure an APY of 4.9% to 5.65%** as of December 21, 2021.

Circle Yield is Here

With Circle Yield, qualified businesses can invest in growing crypto markets while knowing their funds are fully secured with Bitcoin collateral and professionally managed by a regulated financial institution.

Businesses are already reaping the benefits of Circle Yield and USDC. Crypto-oriented social network Minds has converted nearly 10% of the balance sheet to USDC and deposited it into Circle Yield2 as of September 16, 2021.

Minds founder and CEO, Bill Ottman, told Fortune:

“It has a huge impact when [leading tech companies] do it, but if we can create a phenomenon where startups are all putting a tangible percentage of their balance sheet into crypto, that’s a serious trend that could really change the market.”

Circle Yield is the easiest way for qualified businesses with excess working capital to put their dollars to work generating returns and unlock greater access to the digital economy, where USDC is quickly becoming the standard for cross-border, low cost and nearly instant value transfers around the world. 

Learn more about Circle Yield or sign up to talk with an expert today.

“​​What is the average interest rate for savings accounts”, 11/30/21, available at: Bankrate

2 "Social network Minds pours 25% of balance sheet into crypto", 09/16/21, available at: Fortune

* Offering subject to business approval, geographical availability, and regulatory authorization, and there is no guarantee that the product will become available in a specific timeframe or to a specific customer or geography. Circle Yield product offered through Circle International Bermuda Limited (“Circle Bermuda”). Circle Bermuda has entered into lending arrangements with one or more institutional borrowers, including Genesis Global Capital, LLC***.  These lenders pledge and transfer Bitcoin into custody with a third party custodian as collateral for their USDC borrowings and Circle Yield investors benefit from a security interest in Circle Bermuda’s security interest in the pledged Bitcoin.

Circle Account and money transmission services are provided by Circle Internet Financial, LLC. Circle Internet Financial, LLC, NMLS # 1201441, is a licensed provider of money transmission services. A full list of Circle’s licenses can be found here

Circle is not a bank; your Circle Account is not a bank account, and any funds are not insured by the Federal Deposit Insurance Corporation, the Securities Investor Protection Corporation or by any US or foreign government agency, insurance fund, person or entity. For investors in the United States, investments described in this communication are offered by Circle Bermuda to “accredited investors” only in accordance with Regulation D, Rule 506(c) of the Securities Action of 1933, as amended. While Circle Bermuda is regulated by the Bermuda Monetary Authority for digital asset business, Circle Bermuda is not engaged in banking and deposit taking activities and is not regulated for these purposes. You should carefully conduct your own investigations and analyses in connection with any participation in this product, including its objectives, risk factors, fees and expenses and the information set forth in these materials. All prospective participants in the products described herein are advised to consult with their legal, accounting and tax advisers regarding any potential participation. Please read the offering documents carefully before you invest. Additional information is available upon request. 

Not currently available in the following U.S. states: Alaska, Minnesota, New York and Hawaii.

**Rates are purely indicative and are subject to change pending availability, approval and market conditions. 

***Learn more about Genesis Global Capital, LLC here

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