Here Are The Top 4 Stablecoins With The Best Yields In 2026

• Why let your cash sit idle or get stuck in low-interest deposit accounts when you can earn up to 10x with stablecoins that offer the best yields?

Stablecoins get the best of both worlds in fiat and cryptocurrencies. They primarily benefit from blockchain technology’s almost real-time speed, near-zero transaction fees, 24/7 accessibility, and lack of intermediaries. Meanwhile, they’re not prone to the same volatility inherent in crypto, as they maintain a 1:1 peg to their underlying asset.

Over the years, stablecoins have evolved beyond providing users with static balances. From synthetic dollars to treasury-backed tokens, the evolution of these digital assets is now offering people ways to earn more from their idle cash.

Fortunately, the healthy market competition has also paved the way for “yieldcoins,” tokens (often stablecoins) that automatically generate passive income for holders. Users like you can enjoy these rewards without locking these assets in a complex decentralized finance (DeFi) farm.

ADVERTISEMENT## Top 4 Stablecoins by APY

Here are the top 4 stablecoins with the best yields as of January 2026, ranked by their prevailing annual percentage yields (APYs).

1. Ethena (sUSDe)

Ethena (sUSDe) Current Yield: 4%-18% APY

Source: A “delta-neutral” strategy using staked ETH rewards and capture of funding rates from shorting ETH futures.

ADVERTISEMENTBest For: Maximizing yield during bullish market conditions when funding rates are high.

Risk: It is a synthetic asset that relies on complex derivatives markets. Hence, if funding rates remain negative for an extended period, the reserve fund could be stressed.

2. Aave (sGHO)

Aave (sGHO) Current Yield: 5%-9% APY

Source: Revenue generated from the Aave lending protocol. Borrowers pay interest to mint GHO, and a portion of those fees is redirected to users who “save” GHO in the sGHO vault.

Best For: Users who want a decentralized, over-collateralized stablecoin with backing from a blue-chip protocol.

Risk: Minimal smart contract risk within the Aave ecosystem, but “insurance-backed protection” for “eligible customers” safeguards assets of up to $1 million at “defined loss events” (breaches and technical failures).

ADVERTISEMENT### 3. Sky (USDS / Savings Rate)

Sky (USDS) Current Yield: ~4%-11% (max target) APY

Source: Real-world assets (US Treasuries) and over-collateralized crypto loans. USDS replaced DAI as the core stablecoin of the Sky (formerly MakerDAO) ecosystem.

Best For: Stability seekers. Sky has one of the largest “war chests” in crypto to maintain its peg.

Risk: Governance risk due to high reliance on the founder, high regulatory risk, and weak adjustment of the RWA (Real World Asset) backing based on S&P Global’s assessment.

4. Ondo Finance (USDY)

Ondo Finance (USDY) Current Yield: ~3.7%-5.3% APY

Source: High-quality US Treasuries and bank demand deposits. It functions as a tokenized note rather than a standard stablecoin.

Best For: Institutional-grade safety and transparency.

Risk: It is not a “true” stablecoin but a tokenized debt instrument. It has specific geographic restrictions, particularly in the US because it’s not compliant with securities laws.

Final Thoughts

Readers should note, though, that these stablecoin yields may be subject to adjustments at a moment’s notice due to supply and demand dynamics, regulatory developments, or changes in traditional interest rates that affect their underlying US Treasury or cash assets.