Stablecoins like USDT (Tether) and USDC (USD Coin) are popular because they’re pegged to the U.S. dollar and widely accepted across crypto exchanges, lending markets, and real-world asset platforms. In crypto, passive income means earnings generated automatically from your assets—via lending, savings, staking, or structured products—without daily management. Below, we break down seven platforms that accept USDT and USDC, spanning tokenized real estate, centralized lenders, and decentralized protocols. You’ll find options for conservative savers and high-yield stablecoin investing alike, plus steps to get started and the key factors to weigh. In brief: ToVest offers real-world asset exposure; Aave and Compound are DeFi mainstays; Crypto.com and Nexo blend ease with yield; Yield App targets higher APYs; and BlockFi/Celsius are included for context given their historical role in stablecoin investments.

ToVest Tokenized Real Estate Platform

ToVest lets you invest USDT or USDC into fractional, blockchain-based tokens representing institutional-grade real estate—unlocking liquidity and low minimums while maintaining direct, on-chain ownership. Tokenization turns premium properties into divisible digital assets, enabling fast settlement, transparent ownership records, and portfolio diversification beyond traditional DeFi or CeFi stablecoin investments. Investors gain real-time market insights, data-rich dashboards, and ultra-low-latency execution aligned with ToVest’s secure infrastructure and analytics-driven approach to real-world assets.

How to start with USDT/USDC on ToVest:

• Create and verify your ToVest account.

• Choose a tokenized real estate offering that fits your risk/return goals.

• Deposit USDT or USDC from your wallet or exchange.

• Allocate into fractional tokens; review expected cash flows and liquidity windows.

• Track performance with real-time analytics and manage exits via secondary liquidity when available.

For more on market structure and methodology, explore ToVest’s research hub for institutional-grade insights.

BlockFi

BlockFi popularized centralized interest accounts for USDT and USDC by offering simple onboarding, competitive APYs, and no minimum balance. However, it suspended withdrawals and entered bankruptcy in 2022; the estate has since focused on asset recoveries and distributions, and retail interest products are not available as they were previously. Always check the latest status on BlockFi’s official site for updates on eligibility and withdrawals.

Pros:

• Historically easy to use for stablecoin deposits.

• Clean user experience and straightforward interest mechanics.

Cons:

• Operations were halted; interest accounts are not currently available.

• Regulatory and bankruptcy proceedings created withdrawal limitations and uncertainty (BlockFi website).

Celsius Network

Celsius ran a lending platform that matched depositors with borrowers, passing yield back to users on assets including USDT and USDC. It advertised high yields and no withdrawal fees during its growth phase. In 2022, Celsius paused withdrawals and entered bankruptcy; the project has since undergone restructuring, and historical offerings are not accessible to new retail users in the prior format. Lending platforms connect your deposits to borrowing demand, but users should confirm current availability, jurisdictional support, and risk disclosures on the official site (Celsius Network).

Pros:

• Historically high yields with straightforward, app-based management.

• No withdrawal fees when operations were active.

Cons:

• Paused withdrawals and bankruptcy proceedings.

• Geographic and policy restrictions; products not broadly available today.

Crypto.com

Crypto.com’s Earn program is designed for mainstream users who want to earn interest on USDT and USDC with a familiar app, fiat ramps, and Visa card integration. Users can choose flexible or fixed terms, sometimes unlocking bonus rates via loyalty tiers or CRO stake levels. The trade-off: yields, fees, and eligibility vary by jurisdiction and loyalty tier, and trading spreads or card fees can be complex—always review current in-app rates and fee schedules on the official site (Crypto.com).

Quick start with Crypto.com:

• Download the app and complete verification.

• Deposit or buy USDT/USDC.

• Navigate to Earn, select USDT or USDC, and choose flexible or fixed terms.

• Confirm lock-up (if any) and monitor earnings in-app.

Nexo

Nexo is a global stablecoin lending platform that couples high-yield deposit products for USDT and USDC with instant credit lines secured by your crypto. It’s designed for users who want to maintain liquidity while earning and to borrow against holdings without selling. Features and rates vary by region, and certain products may be restricted depending on your location—check the latest terms and supported jurisdictions on the official site (Nexo).

How Nexo differs:

• Lending: Earn on USDT/USDC and other assets.

• Borrowing: Instant credit lines against collateral.

• Flexibility: Withdraw or borrow without dismantling your portfolio (subject to LTV and terms).

Aave

Aave is a decentralized finance (DeFi) platform that lets you supply USDT or USDC directly into on-chain liquidity pools and earn variable interest set by real-time market demand. With no centralized intermediary, deposits, borrows, rates, and risks are visible on-chain. Using Aave requires a Web3 wallet and basic DeFi knowledge, and carries smart contract risk—users should understand permissionless protocols and self-custody practices before depositing (Aave).

Centralized vs. decentralized stablecoin platforms (at a glance):

• Custody

• CeFi: Platform holds assets; recovery depends on company solvency.

• DeFi: You custody via wallet; protocol risk is smart contracts.

• Rates

• CeFi: Platform-set or promotional APYs.

• DeFi: Algorithmic, driven by supply/borrow utilization.

• Transparency

• CeFi: Off-chain statements and disclosures.

• DeFi: On-chain positions, reserves, and rates, 24/7.

• Access

• CeFi: KYC/AML, fiat ramps, customer support.

• DeFi: Wallet-based, global by default, no KYC at protocol level.

Compound

Compound is an algorithmic lending protocol similar to Aave, where USDT and USDC deposit APYs adjust automatically based on pool utilization and governance parameters. It suits users comfortable with Web3 wallets, gas fees, and risk management in decentralized environments. Core differences vs. Aave include market support, interest rate models, and governance specifics—both are pillars of permissionless stablecoin investments (Compound Finance).

Pros:

• Transparent, programmatic yield with on-chain accounting.

• Instant liquidity from deep, battle-tested pools (subject to market conditions).

Cons:

• Requires DeFi proficiency and careful wallet security.

• Smart contract and market risks; rates can change quickly.

Yield

Yield App focuses on packaged yield strategies—sometimes called yield farming—that allocate stablecoins like USDT/USDC across vetted opportunities to target higher APYs. Yield farming is the active rotation of assets across DeFi protocols to maximize returns and often involves higher risk and complexity. While convenient, users should review strategy disclosures, volatility controls, and custody practices before depositing (Yield App).

When it fits:

• You seek higher potential yields without managing DeFi positions yourself.

• You accept strategy risk in exchange for convenience and diversification.

How to Start Investing with USDT and USDC for Passive Income

Step-by-step:

• Choose a platform type: RWA (ToVest), CeFi (Nexo, Crypto.com), or DeFi (Aave, Compound), based on your risk tolerance.

• Create an account (CeFi/RWA) or set up a Web3 wallet (DeFi).

• Transfer USDT/USDC from your exchange or bank on-ramp.

• Select a product: flexible savings, fixed-term, lending pools, or tokenized real estate.

• Understand APY (annual percentage yield), which includes the effects of compounding.

• Monitor returns, check lock-up rules, and plan withdrawals or rebalancing.

Tip: Review minimum deposits, jurisdictional eligibility, withdrawal fees, and any lock-up periods before committing funds.

Factors to Consider When Choosing a Stablecoin Investment Platform

Key criteria:

• Yield and structure: Fixed vs. variable APY; compounding frequency; historical range.

• Security: Audits, custody model, insurance/segregation, and regulatory posture.

• Liquidity and withdrawals: Lock-ups, early exit costs, on-chain liquidity depth.

• Transparency and data: Real-time dashboards, on-chain proof, or third-party attestations.

• User experience: KYC speed, fiat ramps, fees/spreads, and quality of support.

Quick comparison:

• ToVest — RWA tokenization; USDT/USDC deposits; fractional real estate; data-rich analytics; secondary liquidity windows.

• Crypto.com — CeFi Earn; app-first experience; flexible/fixed terms; Visa integration; tiered yields and fees.

• Nexo — CeFi lending; earn plus instant credit lines; regional restrictions apply.

• Aave — DeFi lending; variable on-chain rates; wallet and protocol knowledge required.

• Compound — DeFi lending; algorithmic yields; similar operational profile to Aave.

• Yield App — Managed strategies for higher APY; strategy and custody risks must be understood.

• BlockFi/Celsius — Included for historical context; current availability of interest products is limited or discontinued.

Frequently Asked Questions

Which platforms offer the best yields for USDT and USDC staking?

Promotional or strategy-driven products can show APYs in the ~2.7–6% range, depending on demand, terms, and market conditions.

Can I withdraw USDT or USDC anytime from these platforms?

Many flexible products allow instant withdrawals, while fixed-term or promotional offers may require a lock-up for higher yields; always check term sheets before depositing.

Are USDT and USDC equally safe for earning passive income?

USDC is often viewed as more transparent due to reserve attestations and regulatory alignment, while USDT may offer higher yields at times; ultimate safety depends on platform risk management and custody.

Are these platforms suitable for beginners?

Apps like Crypto.com and Nexo are beginner-friendly, while protocols like Aave and Compound require basic DeFi knowledge and wallet security practices.

How do APYs compare across different stablecoin platforms?

APYs vary widely by demand, lock-up, and strategy; CeFi products post platform-set rates, while DeFi rates float algorithmically with market utilization.