Yield-bearing stablecoin

Yield can be distributed through balance increases, a rising redemption value or a vault share. These mechanisms create different exposures: receiving more token units is not the same as maintaining a fixed price peg.

Yield can originate in debt, loans, fees or derivative strategies. The payment token should be distinguished from the instrument accumulating returns. Losses and exit restrictions depend on the strategy and issuer.

In the EU, MiCA prohibits granting interest related to ARTs and EMTs in Articles 40 and 50. Calling a yield-bearing product a stablecoin does not determine its classification: it may require analysis as a financial instrument or another regulated product.