Messari said yield-bearing stablecoins are growing faster than the broader stablecoin market because Washington remains divided over how yields linked to cryptocurrencies should be treated under U.S. law.
High-yield stablecoins outpaced the growth of the broader stablecoin market by 15 times over the past six months, according to a Messari research report published Thursday.
This increase was driven by a 198% rise in the market capitalization of Circle’s USYC (USYC), a 169% rise in Paxos’ Global Dollar (USDG), a 114% rise in the value of Tron DAO-linked decentralized USD (USDD), and a 91% rise in Ondo Finance’s Ondo US Dollar Yield (USDY). The overall market capitalization of stablecoins increased by 9%.
Messari said stablecoins that offer the highest yields are starting to function more like money market funds or bank deposits. “Winners are not making payments,” Messari said, adding that the largest issuers are focusing their offers on single assets rather than payments-related use cases.
According to Messari, high-yielding stablecoins began outpacing stablecoin supply growth in mid-October 2025. This trend suggests a growing demand for blockchain-based USD products that offer yield without direct exposure to broader crypto volatility.
According to data from Stablewatch, the market capitalization of stablecoins has increased by 11% in the past 30 days, and the total value of yielding stablecoins now stands at $22.7 billion.
Growth of high-yield stablecoins, 6-month chart. Source: Messari
This is a double increase compared to the $11 billion market cap reached in May 2025, but the $22.7 billion value of yield-producing stablecoins is only about 7.4% of the $303 billion stablecoin market cap, up from 4.5% in May last year.
Supply of high yielding stablecoins, highest yielding stablecoins, 30 day chart. Source: Stable Watch
Stablecoins with the highest yields by value include Sky (sUSDS), Ethena (sUSDe), and Maple’s Syrup. $USDCaccording to DefiLlama.
A stablecoin with the highest weekly yield. Source: Messari
In terms of yield, maple syrup $USDC According to Messari, this week’s annualized yield was on top at 4.54%, followed by Maple USDT at 4.17% APY, followed by Sky Lending’s SUSDS at 3.75% APY and Ethena’s USDe at 3.49% APY.
Related: Stablecoin payment startup Kast raises $80 million at $600 million valuation: report
Lawmakers clash over stablecoin yield regulations
Despite growing demand, U.S. lawmakers remain at odds over provisions in the market structure bill related to high-yielding stablecoins.
On Thursday, US Senate Majority Leader John Thune reportedly said that he does not expect the chamber to move forward with the Cryptocurrency Market Structure Act by April.
High-yielding stablecoins have become a major sticking point in the debate, with banking groups warning they could create loopholes that could lure deposits away from traditional banks.
The Senate Banking Committee delayed the rate hike in mid-January as bipartisan negotiations continued, drawing criticism from President Donald Trump for delaying the bill.
Related: Stablecoin inflows rebound to $1.7 billion as Washington fights over yield rules
The Digital Asset Market Structure Clarification Act, known as the CLARITY Act, aims to provide a clear regulatory framework for digital assets. The House of Representatives passed the bill on July 17, 2025, and the Senate has been considering it ever since.
The US federal stablecoin framework, the GENIUS Act, prohibits issuers from paying interest or yield on holdings of payment stablecoins, but still allows third-party platforms to offer reward programs tied to stablecoin holdings. This law was signed into law on July 18, 2025.
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