Yield-bearing stablecoins, such as USDT and USDC, are structured to generate returns while traditional stablecoins maintain value without paying interest. Investors should explore various models like tokenized treasuries, which are safer, and assess the applicable regulations.
Investors must navigate potential regulatory changes and market volatility, as US and EU regulations restrict interest payments on stablecoins. Effective record-keeping is essential for tax compliance, especially as staking rewards may trigger income taxes.
Leave a Reply