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How To Earn Interest on USDC - 5 Best USDC Interest Accounts In 2022

Updated: Aug 4th, 2022
Kevin Groves
Kevin Groves
How To Earn Interest on USDC - 5 Best USDC Interest Accounts In 2022

USDC is one of the most stable "Stablecoins" in the market, having retained its peg with the US dollar even during this volatile crypto ecosystem. Investors are wondering whether there is a way they can earn interest on USDC to earn a passive income. Many crypto lending platforms are delivering this facility. This guide reviews the five best platforms USDC interest platforms that provide the best interest rate on USDC, offer good security, and have the trust of the crypto market.

Best Platforms to Earn Interest on USDC in 2022

Here is the list of the best places to earn interest on USDC at the time of writing:

  • Nexo (Overall Best platform to earn Interest on USDC)
  • BlockFi (Provide best USDC interest rates on multiple tiers)
  • Binance (Offers savings and staking options to earn interest on USDC)
  • Crypto.com (User-friendly platform to earn interest on USDC)
  • Hodlnaut (best USDC interest account for USA)

USD Coin Interest Rate Comparison

The platforms in this guide offer different interest rates. However, the rates are not the only aspects that the investor must look at. There are other attributes, such as the locking period, the security protocols, and additional features to consider. Keeping them in mind allows investors to wisely choose a platform and stick with it for long-term gains. Here is a brief peek into these platforms' best crypto interest rates.

PlatformUSDC Interest RateRequirementBest For
NexoUp to 12% APYStaking NEXO to earn higher interest (10% of portfolio)No minimum redemption period
BlockFiUp to 7% APYNoneNo minimums on USDC deposit
BinanceUp to 1.2% APYNoneFlexible and fixed interest
Crypto.comUp to 10% APYStake more than $40,000 of CRO for highest rateEarn interest using mobile app
HodlnautUp to 9.41% APYNoneGood option for beginners

How to Earn Interest on USDC – Quick Guide

Here are the quick steps that investors must follow to start earning interest on USDC (USD Coin)

  1. Compare and Select the USDC interest platform
  2. Create an account and complete verification
  3. Transfer USD coin or purchase USDC
  4. Start earning interest on USDC

Where To Earn Interest on USDC

Most cryptocurrency exchanges are now offering ways to earn interest on crypto, especially USDC. Since it is currently the most stable Stablecoins in the market. For instance, the USD coin is the only Stablecoin to have maintained its peg with the US dollar since inflation started to impact the DeFi space. However, users must choose a crypto lending platform that has remained optimistic during this period and continues to add support for the customers. With that in mind, here are the reviews of the best exchanges to earn interest on USDC.

1. Nexo - Overall Best platform to earn Interest on USDC

Nexo is the world's leading crypto lending platform that has maintained an optimistic outlook about the crypto market ecosystem to this day. Not only does Nexo provide the highest Annual Percentage Return (APR) on USDC, it is one of those crypto lending platforms constantly interacting with the customers and answering their questions on social media platforms.

Launched in 2018, Nexo soon became the primary portal to provide investors with crypto loans and savings accounts. It has an accessible UI and provides enough assistance for newcomers to be comfortable account their crypto investments. Nexo has paid out over $200 million in interest till now among the 4 million users it caters to. It supports 33 crypto assets and has over 200 jurisdictions.

Earn up to 12% on USDC with NexoEarn up to 12% on USDC with Nexo

At Nexo, investors can earn up to 12% Annual Percentage Returns (APR) on USDC. The platform has kept the procedure extremely simple and accessible. Users only have to log in and top up their accounts with at least 1 USDC. Nexo compounds interest daily, and users can withdraw their earnings anytime they want.

However, earning 12% APR on USDC comes with a caveat. Users must be part of the Platinum Tier Loyalty program and fill their Nexo portfolio up to 10% with NEXO tokens. For investors who are part of the base program – with no NEXO tokens – the USDC interest is 10%. Additionally, if a user chooses to receive their payouts in NEXO tokens, they will get an extra 2%.

Calcuate yield on USDC with NexoCalcuate yield on USDC with Nexo

Another feature that put Nexo on the top of our list is its zero-fees approach. It doesn't levy additional charges for withdrawing or holding funds. Moreover, to protect investors' assets, Nexo has a $775 million insurance policy in place by BitGo and Ledger.

Nexo is a great platform to earn interest on USDC for newcomers and veterans alike. The user interface is simple, the interest rates are high, and insurance adds another layer of security to its already robust protection format. Considering these factors and that it continues to engage with its community via Twitter, experts believe Nexo is the leading crypto lending platform worldwide. The only downside is that the Nexo account interest is unavailable for US users. But for non-US users, Nexo provides all the required facilities.

2. BlockFi - Offers high interest rates for minimum USDC tokens

BlockFi is another crypto lending, and interest-earning platform experts and investors consider the best place to earn interest on USDC. Known for lending USD loans against Crypto assets, BlockFi is backed by the biggest names in the crypto venture capitalist community, such as Galaxy Digital, CMT Digital, Valar Ventures, and even Winklevoss Capital. Servicing over 1 million customers currently, BlockFi manages over $10 billion worth of crypto assets.

BlockFi USDC interest tiers and ratesBlockFi USDC interest tiers and rates

BlockFI offers multiple tiers of interest on USDC.

  • Tier 1: Users can earn 7% interest for holding 0-20,000 USDC
  • Tier 2: Users can earn 5% interest for holding 20,000-2 million USDC
  • Tier 3: Users can earn 4% interest for holding more than 2 million USDC

That is, users can earn investors can earn the highest interest rate by holding the minimum amount of USDC. All users have to do is park their USD coins inside their BlockFi interest account and let the platform earn them regular interests. That being said, to get the maximum benefit, users must wait for the first of every month, for that’s the time BlockFi transfers the yields to investor accounts.

While having a slightly lower interest rate when comparing BlockFi to NEXO, BlockFi doesn't impose any additional requirements on the user. That is, investors don't need to hold other crypto assets to enhance their earnings. That said, like Nexo, BlockFi doesn't have a locking period and is suitable for non-US users.

3. Binance - Best For Savings and Staking Options To Earn USDC Interest

Binance is the world's leading crypto platform that provides trading services, crypto loans, interest accounts, NFT marketplaces, Binance Learn and Earn, and Binance Earn, to name a few. Binance Earn is a service that allows investors to earn USDC and other listed crypto assets through staking or interest.

Regarding USDC interest, Binance Earn provides two options flexible savings and flexible DeFi staking. Flexible savings rewards investors with interest on USDC based on two tiers. Below 75000 USDC and above 75000 USDC.

  • Tier 1: It applies to USDC savings of up to 75000 USDC and the interest rewards of 1.2%.
  • Tier 2: It applies to USDC savings of more than 75000 USDC, and the interest rewards are 0.30%.

Flexible DeFi staking is another way investors earn higher interest on USDC. It is meant for advanced users and allows them to earn up to 2.79% interest. There is no lock-up period involved, but Binance considers it the riskier of the two options available.

Binance Earn interest on USDCBinance Earn interest on USDC

Due to the platform's popularity, Binance Earn has generated a lot of interest from the market experts and the investors alike. That being said, many have been critical of Binance's low-interest rates for USDC. Furthermore, the liquidity rewards for USDT also stand at 1.52% at the time of writing.

Binance’s UI has been created with institutional investors in mind. So, newcomers might find it difficult to interact with the platform without training. However, Binance provides a good tutorial video to help novice investors.

Compared to the other listed crypto yield platforms, Binance offers far lower interest rates. However, it makes up for it with a focus on security that involves both standard protection measures and a robust insurance policy. Binance Funds is a $1 billion insurance policy that protects investors' assets in the event that the wallet gets hacked.

4. Crypto.com - Best Mobile App To Earn Interest In USDC

Crypto.com is another crypto platform that provides more than trading services. In addition, it offers Crypto credit: a loan service, an NFT marketplace, a Visa Debit card, and one of the most popular facilities, the Crypto Earn. Crypto.com is known as one of the most profitable staking platforms on the market, providing interest-earning opportunities for more than 40 crypto assets. The VISA credit card is Crypto.com's flagship product, allowing users to pay retailers using cryptocurrencies.

Crypto.com App interest rates for USDCCrypto.com App interest rates for USDC

With Crypto Earn, investors can earn as high as a 10% Annual Percentage Yield on USDC. Users can choose among three terms when putting their USDC.

  • Flexible Term: It allows investors to park their USDC inside their Crypto.com savings account and earn 0.4% APY. They can enhance their APY to 0.55% by staking maximum CRO.
  • 1-month term: It allows an investor to lock up their USDC in the savings account for up to one month and earn up to 0.49% APY. They can increase the APY to 6.00% by staking the maximum CRO.
  • 3-Month Term: Investors can earn up to 6% APY on USDC by locking their USD coin in the Crypto Savings Account for three months. Staking maximum CRO will allow those investors to earn up to 10% APY on USDC.

Like NEXO, Crypto.com allows users to earn higher yields by staking the native crypto- CRO. Many investors have said that this is its biggest drawback. It is mostly because the CRO might not be feasible for many newcomers who want to earn passing income through their USDC holdings. Despite that requirement, the APY investors can earn 6% interest on their USDC, which is still higher than most crypto lending platforms.

Furthermore, the platform's user interactivity and higher than usual interest rates make it suitable for first-time and long-time crypto investors. Nevertheless, Crypto.com is one of the world's most popular crypto apps, with over 50 million active users and support for over 250 cryptocurrencies. It is also one of the few trading platforms through which users can invest in crypto using debit or credit cards.

5. Hodlnaut - Best USDC Interest Account For USA

Hodlnaut is one of the leading cryptocurrency lending and savings platforms. Among the list, it is the primary platform that solely focuses on lending, borrowing, and savings, allowing users to HODL their crypto assets and earn Annual Percentage Yields or borrow or lend crypto loans. Found in 2019, this crypto lending and savings platform support only six cryptocurrencies BTC, DAI, ETH, USDC, USDC, and WBTC. Investors can earn up to 10.5% interest on their crypto holdings.

One of the most standout aspects of this platform is that it is available for US citizens. The interest generated on Hodlnaut is paid every week on every Monday. In addition to the desktop app, Hodlnaut also provides a robust mobile app for android and apple users.

List of USDC interest rates on HodlnautList of USDC interest rates on Hodlnaut

For storing USDC, users can earn up to 9.41% interest. The APY is divided into four tiers based on the amount of USDC deposited.

  • Tier 1: It is valid for USDC up to the first 100k on which the investor earns 9.41% APY.
  • Tier 2: It is valid for the next 400k USDC, on which the investor earns 3.04% APY.
  • Tier 3: It is valid for the next 500k USDC on which the investor earns 0.50% APY.
  • Tier 4: It is valid on more than 1 million USDC, on which the investor earns 0.10% APY.

Another factor that might interest the investors is that Hodlnaut features no minimum deposit or lock-in period. Users can withdraw their funds at any time. Furthermore, for those unsure about how much passive income they can generate from the platform, Hodlnaut provides an interest calculator.

As a Singapore-based platform, Hodlnaut operates under Singapore law that introduced the Payment Services Act in 2008. To expand its operations, Hodlnaut has also applied for the Monetary Authority of Singapore license. Hodlnaut ensures users' assets under the Nexus Mutual Custody Cover.

Compared to NEXO, Hodlnaut provides a lower interest rate. However, unlike our top-rated platform, Hodlnaut doesn't require the investor to buy the native crypto-assets to enhance the interest rate. In that sense, it is similar to BlockFi. Additionally, the user interface is friendly, and the investor interest in the platform is generally high.

Top USDC Interest Platforms Compared

Below lies the comparison list of the top USDC interest platform. The concise information provided is good for getting a peek at the major functionalities of the crypto lending portals. However, investors who want to turn their savings account into an instrument for long-term gains should check the complete reviews. They're simple to understand and provide an unbiased view of the platforms.

ExchangeCrypto AssetsTrading FeesRatingPromotionWebsiteReview
nexo

Nexo

40+None
RatingOur ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
4.7/5
StarStarStarStarEmpty Star
$25 Bitcoin for >$100 depositVisit Nexo

Nexo Review
blockfi

BlockFi

13None
RatingOur ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
4.6/5
StarStarStarStarEmpty Star
Get up to $250 Bonus in BitcoinVisit BlockFi

BlockFi Review
binance

Binance Earn

3970.1%
RatingOur ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
4.5/5
StarStarStarStarEmpty Star
20% off trading feesVisit Binance Earn

Binance Earn Review
Crypto.com

Crypto.com

250+None (3.5% surcharge for credit card)
RatingOur ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
4.5/5
StarStarStarStarEmpty Star
None available at this timeVisit Crypto.com

Crypto.com Review
HodlnautHodlnaut

Hodlnaut

6N/A
RatingOur ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
4.1/5
StarStarStarStarEmpty Star
None available at this timeVisit Hodlnaut

Hodlnaut Review

Should You Earn Interest on USDC?

Earning interest on a crypto asset has long been considered the best way to earn passive income through cryptocurrencies. Investors who want to diversify their investments and want to invest in a place where they can get small, but regular returns up to 12% APY on USDC holdings with little expertise required. Furthermore, USDC is one of the most “stable” stablecoins right now as it is backed by a mix of cash and short-term US treasury bonds. Investors consider USDC the safest Stablecoin due to strong compliance with US regulators.

Is Earning Interest on USDC Worth It?

Yes, earning interest on USDC is a worthwhile investment strategy. The current bear market makes it difficult for people to make any real gains from standard trades. The free-fall scenario of the existing ecosystem doesn't provide many opportunities to earn significant profits. However, with a savings account, investors can earn from 0.10% to 12% interest per annum on USDC.

Additionally, unlike other algorithmic Stablecoins, USDC is backed by a mix of real cash and some US treasury bonds, allowing it to stay pegged to the USD. The fluctuations of the current market haven't hurt the USDC value, even by a little. While it is not a guarantee that it will retain its stability, for now, USDC is presenting a win-win situation to the investors. However, with all investments, there are still risks to be aware of.

What Are the Risks of Earning Interest on USDC?

The risks of earning interest on USDC aren't much different from trading or earning interest on any cryptocurrency. No regulation decides the interest rates; the crypto lending platforms set their own. Currently, there are no government safeguards to protect investors. Everything from the security protocols and the insurance policies rests on the crypto interest platforms.

Also, the current crypto conditions aren't considered very optimal. Lending platforms can slash interest rewards and, in extreme cases, stop withdrawals. Recently, Babel Finance and Celsius both suspended withdrawals. These platforms are currently under immense liquidity pressure. In Celsius's case, the issue is much more extreme, and the founder is considering corporate restructuring. BlockFi had issues with liquidity and was bailed out by FTX with a $250 million revolving credit facility.

Trade USDC vs. Earn Interest on USDC?

Both trading and earning interest are ways that users can interact with the crypto ecosystem to earn profits. The former allows investors to buy and sell USDC on a crypto exchange and rapidly react to the market changes to make profits. However, it is risky and recommended for experienced traders only. On the other hand, less experienced investors can earn USDC regularly in small amounts with a savings account. Users can earn up to 12% interest on USDC by starting a savings account. Moreover, interests are compounded daily – making the profits higher.

Earning Interest on USDC – Full Guide

Here is the full tutorial to start earning interest on USDC:

1. Compare and select the USDC interest platform

First, the user must select the right crypto lending platforms that support USDC. The platforms listed in this article provide different interest rates, have other requirements, and take different measures to protect investors' assets. The top listed crypto lending portal, Nexo, provides all these facilities and has the highest interest rate. That is why this full guide explains how to use Nexo to earn interest on USDC.

2. Create an account and complete verification

Visit the official Nexo website and create an account. The process is simple. Users only need to enter their personal details and upload the KYC document. The latter part is important because without providing a government-issued ID, Nexo won’t allow the investor to deposit any crypto.

visit the nexo websitevisit the nexo website

3. Transfer USD coin or purchase USDC

If the user already has USD Coins in their external crypto wallet, they can transfer the cryptocurrency by sending it to the unique wallet address using the Ethereum or Polygon network. There is an option to top up directly from a Metamask wallet. Otherwise, they can buy USDC from Nexo using one of the supported fiat currencies using a bank transfer. If the user is part of the loyalty tier and has at least 1% of their Nexo portfolio with NEXO token, they can get up to 0.5% cashback.

Top up USDC to NexoTop up USDC to Nexo

4. Start earning interest on USDC

Once the Nexo Account is populated with USDC tokens, it will start accruing interest. Users can monitor their earnings through the desktop app or the Nexo Wallet.

Frequently Asked Questions

Multiple crypto interest platforms provide interest on USDC. The top ones are Nexo, Binance, Crypto.com, BlockFi, and Hodlnaut. These platforms offer lucrative interest rates for holding USDC between 1.2% and 12% per annum.

Nexo rewards the highest interest rate on USDC at 12% per year at the time of writing. Moreover, it accrues interest daily, has no lock-up periods, and users can withdraw from their holdings whenever they want.

The demand for Stablecoins such as USDC is constantly more than the supply. Furthermore, it is the most stable "Stablecoins" in the market. That's why USDC APY is so high.

The easiest way for investors to earn money on USDC is through crypto lending platforms. Users can hold tokens in their crypto savings accounts on those platforms and earn an Annual Percentage Yield (APY) of up to 12%.

USDC is a Stablecoin backed by cash and short-term US government bonds as collateral. For an investor, 1 USDC should always be equivalent to $1.

Conclusion

Earning interest is one of the most efficient ways to profit from USDC holdings. However, because the token is a stable component of the crypto ecosystem that is used to transfer value between crypto-assets. It should be noted that earning interest does come with risks. Most of the regulations provide no safeguards on crypto holdings and the customer has no control over the lending platform's security and safety processes.

That being said, in this volatile crypto market, getting interest on USDC can provide regular and assured returns, making it suitable for newcomers and long-time investors alike.

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Kevin GrovesKevin GrovesKevin Groves

Kevin started in the cryptocurrency space in 2016 and began investing in Bitcoin before exclusively trading digital currencies on various brokers, exchanges and trading platforms. In 2019, he started HedgewithCrypto to publish informative guides about Bitcoin and share his experiences with using a variety of crypto exchanges around the world.

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