- Jack McDonald, Ripple’s Jack McDonald, outlines the two main ways that stablecoins can earn a yield: by using interest-bearing investments and DeFi on-chain strategies.
- Congress has been examining the GENIUS Act restrictions as RLUSD is expanded.
The use of stablecoins is no longer limited to digital dollar substitutes. Instead, they have evolved into instruments used for yield generation. That has sparked new debates in Washington and the crypto-markets. Jack McDonald, Ripple’s SVP for Stablecoins in the Crypto In A Minute Series, outlines two ways that users can earn interest today with stablecoins.
McDonald spoke in this segment explained Investors have two options: they can hold stablecoins with interest and share in the return generated by reserves or use them on-chain for protocols of decentralized financing (DeFi). To earn money, stablecoins can be lent or used as liquid on platforms such Aave or Uniswap.
“You bring greater efficiency and greater utility to your dollar while using it on-chain,” McDonald said, comparing this approach to the operation of a savings plan that is decentralized.
Is your capital sitting idle?@_JackMcDonald_SVP Stablecoins of Ripple claims that this is not necessary.
In this latest Crypto In One Minute Jack explores the two main ways that stablecoins generate yield.
✅ Direct Yield: Assets that pay interest.
✅ Secondary Utility: Collateralizing for… pic.twitter.com/V9wZiJpSD1— Ripple (@Ripple) January 7, 2026
Stablecoins are now part of the Ripple RLUSD Test as they expand testing.
Ripple actively positions its RLUSD Stablecoin to this new chapter. As CNF reportedThe company began live testing RLUSD on Ethereum, Layer-2 networks like Base and Optimism. RLUSD may not be currently yielding interest but it is Ripple’s broader aim to unlock the financial utility of blockchain.
This company is also received Conditional approval by the U.S. Office of the Comptroller of the Currency to chart Ripple’s National Trust Bank. Establishing the basis for future yield bearing offerings, under federal and State oversight.
The utility sector is also attracting attention at the Congress. The CNF detailedGENIUS Act had previously banned yield-bearing Stablecoins. This restriction is now being reconsidered by lawmakers as they prepare to vote on the Market Structure Bill.
Faryar Shirzad, posting On X, it was pointed out
Congress already settled this in GENIUS—reopening it now only creates uncertainty and risks the future of the US dollar as commerce moves on-chain.
He said that the banks receive over $360 billion in fees and interest from payments and deposits each year and that stablecoins are viewed as a threat to their competitiveness rather than a prudential concern. Charles River Associates’ and Cornell University’s independent studies have found that stablecoin adoption has no correlation with reduced lending and community bank deposits.
Mike Novogratz of Coinbase and Brian Armstrong CEO have both called on Congress for support in innovation.
“China has decided to pay interest on its own stablecoin… I worry we are missing the forest through the trees in the U.S.,” Armstrong wrote. He said that China’s recent decision to pay interest for its digital currency, the yuan. reported By the CNF, the CNF shows the competition stakes.
“Rewards on stablecoins will not change lending one bit, but it does have a big impact on whether U.S. stablecoins are competitive,” He also added.
“This article is not financial advice.”
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Source: www.crypto-news-flash.com
