Yield-bearing crypto assets are entering a new phase of growth as regulatory clarity begins to reshape investor sentiment across digital markets. The passage of the GENIUS Act, a U.S. law establishing a framework for dollar-pegged cryptocurrencies, has brought renewed confidence to both stablecoin issuers and institutional investors. Blockchain research firm RedStone reported that yield-generating assets within crypto are expected to expand sharply in the coming year as clearer rules open doors for large financial institutions. For years, crypto markets have lacked the traditional interest-bearing structure that underpins conventional finance. With stablecoin products now gaining formal oversight, digital asset managers and corporate treasuries are beginning to reimagine how to use tokenized capital more efficiently, turning passive holdings into yield-producing instruments.
The report found that the market for interest-bearing stablecoins has grown nearly 300 percent in the past 12 months, with emerging platforms challenging the dominance of Tether and Circle. These new entrants are building tokens that combine dollar-pegged stability with on-chain yield mechanisms, offering investors an alternative to non-interest stablecoins. The shift coincides with a broader institutional movement toward tokenized finance, where capital can move faster, settle instantly, and earn returns within transparent blockchain environments. Despite this progress, many institutions have held back, citing the need for better-defined risk metrics. Analysts believe that the GENIUS Act could provide the legal and operational standards needed to manage exposure effectively and unlock new participation from asset managers, insurers, and corporate treasuries looking for regulated yield opportunities.
RedStone’s data underscored the scale of the potential expansion. While the total cryptocurrency market capitalization is estimated at $3.55 trillion, only around $300 billion to $400 billion of those assets currently generate yield. This means yield-bearing tokens represent just 8 to 11 percent of total crypto, compared with 55 to 65 percent of assets in traditional finance. The firm described this disparity as one of the industry’s “greatest opportunities,” suggesting that a fully developed yield infrastructure could attract major institutional capital. In a global market where liquidity and transparency are increasingly prized, yield-bearing stablecoins may offer the bridge between digital innovation and conventional fixed-income strategies. As new rules normalize risk management and reporting, the next generation of tokenized financial products could become integral to both corporate balance sheets and consumer savings tools, signaling a new stage in crypto’s institutional evolution.
